The Indian equity markets have been experiencing profit booking from the last few sessions; and this is in large part due to the 200-day moving average (DMA), which is acting as a resistance. The benchmark index S&P BSE Sensex and broader Nifty50 have 200-DMAs at 39,680 levels and at 10,890, respectively.

As the indices try to conquer their 200-DMA levels, several stocks in the Nifty500 are also witnessing strong profit-booking. This average is acting as a firm hurdle for major stocks like ACC Ltd, Adani Ports and Special Economic Zone, Asian Paints , ITC Ltd, and Ujjivan Financial Services. There are 279 stocks trading below their respective 200-DMAs, with 64 of them majorly attempting to conquer the levels although the resistance has been resilient.

The mid-cap stocks near their 200-DMAs which are continuously witnessing profit booking are: eClerx Services, Castrol India, Finolex Cables, Jamna Auto Industries, Kansai Nerolac Paints Ltd, and Tata Investment Corporation Ltd.

Meanwhile, 43 stocks are witnessing profit booking at their respective 100-DMAs. The list includes Gillette India, ICICI Bank Ltd, UPL Ltd, HDFC Asset Management Company, Heritage Foods, InterGlobe Aviation Ltd and IndusInd Bank Ltd.

Moving averages exhibit the overall tendency of a stock to conquer higher levels. They also showcase the underneath support building over a period of time. Average is derived from pre-determined period to help map out the price data accurately. Other simple (daily) moving averages include 100-DMA and 50-DMA. These are ordinary averages, but can display major trading outlook.

Source: spidersoftwareindia.com