10 Stocks Falling Below 50-Day Moving Averages, Showing Negative Breakout

Markets have been seeing a negative bias over the last few trading sessions. Here are a list of stocks that are showing a negative breakout and falling below the 50-day moving averages.

Stock	50-day moving average	Current market price
CESC	75.32	72.2
Apollo Tyres	318.65	324.31
NALCO	80.63	78.3
Nykaa	145.2	142.15
Kolte Patil	276.15	272.6
Larsen	2,155.09	2134
Vardhman	312	309
Power Finance	145.67	144.7
Magadh Sugars	319.1	318.65
Nitin Spinners	207.23	206.55

Significance of 50-days moving average

50-day moving averages are considered as significant by marketmen as they are seen as important indicators for short term movement of the markets. If a stock's price moves significantly below the 50-day moving average, it's commonly believed that the trend in the stock prices is towards a downside. The 50-day simple moving average is a trendline that represents the daily plotting of closing prices for a stock, averaged over the past 50 days.

Sensex sees selling pressure

Meanwhile, the Sensex and the Nifty saw selling pressure in trade. The losses for the Nifty were once again being led by select Adani Group stocks. The Sensex was down 225 points, while the Nifty dropped more than 90 points in trade. Adani Enterprises was down 3% in trade and was among the top Nifty losers. Global cues too were weak with constant selling pressure being seen across the Asian markets on weak handover from Wall Street. Fears of rising interest rates left investors worried and this pulled down the markets. Most analysts believe that the markets could see further downside from these levels, if interest rates continue to rise. In fact, the global markets too have come-off a bit and there is a possibility that we might see commodity prices also reacting. Investors are advised against investing in lumpsum and it is better to invest money on declines and in smaller quantities.