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5 Bluechip Stocks To Buy Trading Below 200-Day Moving Averages

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Despite the markets surging over the last couple of days there are a few stocks that are still trading way below their 200 day moving averages. The trend by analysts is considered as bearish, though it is also a sign that some stocks have come-off sharply. Here are a few of these bluechip stocks that could be worth of buying.

 

Aurobindo Pharma

Aurobindo Pharma

Current Market Price200-day moving average
Rs 701825

This stock of Aurobindo Pharma is significantly below its 200-day moving average. Aurobindo Pharma is one of the second biggest pharma companies in the country after Sun Pharma. The company is a good profit making company and has consistently been paying dividend. The stock is also trading sharply lower from its 52-week high of Rs 1,063. Several brokerages including CLSA have a buy call on the stock of Aurobindo Pharma. The company has one the highest return on equity when compared to peers.

If you are looking at a pharma stock to buy, this could be a good bet.

Amara Raja Batteries
 

Amara Raja Batteries

Current Market Price200-day moving average
Rs 635756

Amara Raja Batteries is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. The company owns and manufacturers the renowned Amaron batteries.

The stock of Amara Raja Batteries is trading way below its 200 days moving averages and analysts are upbeat on the stock. Recently, brokerage firm Sharekhan had also placed a buy call on the stock.

"We maintain our Buy rating on Amara Raja Batteries with a revised price target of Rs. 784, owing to price correction, a brighter demand outlook for batteries, and comfortable valuations," the brokerage has said.

Lupin Ltd

Lupin Ltd

Current Market Price200-day moving average
Rs 889Rs 1045

Lupin is among the renowned pharma companies in India. Like Aurobindo this stock is also trading below its 200-day moving average. The problem for Lupin is that most of the pharma sector stocks have taken a knock as investors have moved money to IT and economy related stocks like banking. This has led many stocks from the sector falling.

However, if you are looking to diversify your portfolio and buy the stock, it is not a bad bet as some pharma stocks are defensive and could help during a sharp downturn in the markets. The sharp depreciation in the Indian rupee against the dollar, which we have been seeing lately could also help the company, given its huge export numbers.

The shares of Lupin were last trading at Rs 881 on the NSE.

Bajaj Consumer Care

Bajaj Consumer Care

Current Market Price200-day moving average
Rs 180Rs 260

Bajaj Consumer Care has seen one of the sharpest declines in terms of price erosion. The company makes the noted Bajaj Almond and Bajaj Amla Hair Oil. The company's stock is available at a dividend of more than 5%. The price to earnings ratio is also very good at around 12 times one year forward earnings. If you are looking to diversify witH buying into FMCG, this may not be a bad bet.

BPCL

BPCL

Current Market Price200-day moving average
Rs 391Rs 440

The big news for the stock was has to be the proposed diversification by the government. As soon as the government finalizes a buyer to sell its stake in the company, we could see the stock surge. The company recently declared a very good dividend of Rs 58 per share, which it is unlikely to declare in the future. Don't expect such kind of dividends in the future.

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author, are not liable for any losses caused as a result of decisions based on the article.

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