Positive Breakout: 4 Stocks That Cross Above Their 200 DMA

Four stocks' closing prices have crossed above their 200 DMA (Daily Moving Averages) today. 200 DMA can be described as a long-term moving average and it helps in finding stronger stocks in the market. If stocks have performed well above the moving average over this tenure, possibilities are they have strong fundamentals that have kept the prices resilient.

It helps traders in deciding the overall trend in a specific stock. DMA can show the direction of a trend and potential areas of support and resistance. It potentially helps in determining buy and sell signals for a particular stock. Below are stocks that have managed to cross above their 200 DMA:

1. Hindustan Zinc: The stock's last trading price is Rs 318.55 per share with marginal intraday gain of 0.27%. Hindustan Zinc's 200 DMA is Rs 318.48 apiece. Hindustan Zinc shares gained 4.22% in last 1-week, soared 10.19% in last 1-year, and declined 4% in last 2-years. In last 3-years, Hindustan Zinc shares rallied 54%. The large cap stock operates in metals & ferrous sector.

2. Britannia Industries Ltd: The last trading price of the large cap FMCG stock on BSE is Rs 4580.05 per share. Its 200 DMA is Rs 4570.77 apiece. Britannia shares offered 21% return in last 1-year and soared 18% in last 2-years.

3. MM Forgings: Last trading price of MM Forgings share on BSE is Rs 884.00 per share with marginal intraday gain of 0.60%. MM Forgings shares rallied 9% in last 1-year and soared 180% in last 3-years. Its 200 DMA is Rs 883.14 apiece.

4. Hindustan Unilever Ltd: Last trading price of the large cap FMCG stock on BSE is Rs 2572.05 per share with intraday rally of 0.46%. Its 200 DMA is Rs 2569.33. Hindustan Unilever shares gained over 4% in last 2-weeks, soared 0.23% in last 1-year, and fell 2.83% in last 2-years.

The company on October 19, 2023 will consider its unaudited standalone and consolidated financial results for the quarter and half year ended 30th September, 2023. It will also consider the proposal for payment of Interim Dividend, if any, for the Financial Year ending 31st March, 2024.

Meanwhile, stocks movnig below the 200 day moving averages are believed to be weak, unless there is some bounce in the stock. This average gives you more of a long-term trend in a particular stock. Whether these stocks have to be bought into, only chartists can tell. For common persons, a fall below 200 day moving averages generally shows a weakness in the stock. Technicals must be read along with fundamentals as structural changes in the performance of a company will always have an impact on a stock.