Half of top 500 stocks trading below their 200-DMA, shows data

Analysts said that half of the BSE 500 firms trading below 200-DMA clearly indicates that market sentiment isn't strong and there is heightened selling pressure in the broader markets

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Sundar Sethuraman Mumbai

2 min read Last Updated : Oct 12 2022 | 9:13 PM IST

The benchmark Nifty50 managed to reclaim its 200-day moving average (DMA) on Wednesday but about half of top 500 stocks continue to languish below this key technical indicator. The 200-DMA — nearly a year’s average of closing prices — is analysed by traders to understand the market sentiment. A fall below these levels indicates a weak trend. As many as 117 of the top 500 stocks are trading more than ten per cent below their 200-DMAs, data shows.

Among individual stocks, Tanla Platforms, Mastek, and Medplus Health Services are trading more than 30 per cent below their 200-DMA. Meanwhile, stocks like Mazgaon Dock Shipbuilders, KRBL and Cochin Shipyard are comfortably above their 200-DMAs, with Mazgaon Dock 104 per cent higher