The Indian stock market is in pullback mode; with the BSE Sensex and the NSE Nifty rising as much as 3 per cent or 3.1 per cent from their recent lows.
Technically, the Nifty 50 index seems to have bounced back after seeking support around its 50-DMA (Daily Moving Average). Moving averages play an important role in understanding the stock price trend. In general stocks trading above key moving averages such as the 20-, 50-, 100- and 200-DMAs are considered trading on a bullish note and vice versa.
Similarly, in case, of market volatility, these moving averages act as support and resistance levels; thus aiding entry and exit decision making for stock traders.
In recent days, the Nifty 50 index consistently sought support around its 50-DMA, which now stands at 24,108, and was seen facing resistance around its 20-DMA at 24,475 levels; before the breakout on Friday. The NSE benchmark index had spent eight trading sessions within the above mentioned moving averages.
Here are FIVE A-group stocks from the BSE 100 and BSE 200 indices, which at present are seen testing support around their respective 100-day moving averages.
Godrej Properties
Current Price: Rs 2,930
Upside Potential: 11.6%
100-DMA Support: Rs 2,860
Resistance: Rs 3,040; Rs 3,090
The 100-DMA for Godrej Properties stands at Rs 2,860. The stock has repeatedly found support around this key moving average in the last two weeks. The longer-term chart shows that the stock has consistently found support around its 100-DMA in times of a market correction post the breakout in April 2023. Hence, the 100-DMA support becomes all-the-more important for Godrej Properties.
On the flip side, break and sustained trade below the 100-DMA can trigger a slide towards the 200-DMA, which stands at Rs 2,480 levels.
Exide Industries
Current Price: Rs 496
Upside Potential: 9.3%
100-DMA Support: Rs 484
Resistance: Rs 513
ABB India
Current Price: Rs 7,900
Upside Potential: 17.7%
100-DMA Support: Rs 7,640
Resistance: Rs 8,140; Rs 8,255
The 100-DMA for ABB stands at Rs 7,640 levels. ABB India in the last one month has tested support around its 100-DMA on multiple occasions. The stock is currently seen headed towards its 50-DMA hurdle at Rs 8,140 above which next resistance point is at RS 8,255.
Gujarat Gas
Current Price: Rs 603
Upside Potential: 10.1%
100-DMA Support: Rs 589
Resistance: Rs 630; Rs 636
Pidilite Industries
Current Price: Rs 3,081
Upside Potential: 4.5%
Support: Rs 3,038
Resistance: Rs 3,112
Pidilite Industries is broadly seen respecting the 100-DMA support since December 2023. The 100-DMA at present stands at Rs 3,038 levels; below immediate support for the stock is seen at Rs 3,016.
First Published: Aug 19 2024 | 10:37 AM IST
