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.
On Monday, at 09:50 AM, the Sensex had gained 0.2 per cent or 130 points at 80,565; while its NSE counterpart the Nifty 50 index advanced 0.3 per cent or 63 points to 24,605.
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
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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.
As long as the stock manages to sustain above the 100-DMA, it may attempt to pullback towards the super trend line resistance at Rs 3,270 levels. Interim resistance for the stock is visible at Rs 3,040 and Rs 3,090 levels. CLICK HERE FOR THE CHART
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
Exide Industries is trading less than 3 per cent from its 100-DMA, which stands at Rs 484. On the upside, the stock needs to cross the 20-DMA barrier at Rs 513 to regain strength. Break and sustained trade above the 20-DMA can trigger an up move towards Rs 542 levels. On the downside, the next major moving average - i.e. 200-DMA stands at Rs 395. CLICK HERE FOR THE CHART
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.
Break and sustained trade above both the above mentioned hurdles can open the doors for a rally towards Rs 9,300 levels. On the other hand, in case, the 100-DMA support fails to hold, the stock has near support at Rs 7,400 levels. CLICK HERE FOR THE CHART
Gujarat Gas
Current Price: Rs 603
Upside Potential: 10.1%
100-DMA Support: Rs 589
Resistance: Rs 630; Rs 636
Gujarat Gas is seen trading close to its 100-DMA for the fourth straight day. The 100-DMA stands at Rs 589. As long as the stock manages to protect the 100-DMA, it can potentially bounce back towards its super trend line resistance at Rs 664. Interim resistance for the stock is visible at Rs 630 and Rs 636. Below 100-DMA, the next key moving average - the 200-DMA stands at Rs 545. CLICK HERE FOR THE CHART
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.
On the upside, the stock will need to clear the hurdles around the 20- and 50-DMAs around Rs 3,112-odd levels, for a rally towards Rs 3,220. The overall outlook seems tepid for the moment with 100-DMA as the key support for now. CLICK HERE FOR THE CHART