9 High Quality Stocks Trading Below 200 Day Moving Averages

Markets during the course of the week were relatively stable. Foreign Portfolio investors have continued to be sellers in the Indian markets. Here are a few stocks that are trading below 200 day moving averages.

Stocks trading below 200 day moving averages

Name	Current market price	200-day moving average price
ICRTC	651	641.15
Gillete India	4992	5157
Tata Elxi	6223	7297
Punjab chemicals	1083	1229.92
Throcare	571	698
Infosys	1504	1543
Oracle Financial	3083	3205
Masktek	1751	1980
Galxo Smithkline Pharma	1304	1422

Significance of 200 day moving averages

Sometimes the 200 day moving averages are read along with the 500 day moving averages by technical analysts. Stocks trading below the 200 day moving averages are considered weak, unless there is come 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 should be read along with fundamentals as structural changes in the performance of a company will always have an impact on a stock.

Sluggish trend in Indian stocks

Meanwhile, the Nifty traded negative in the first half on Friday, despite positive US and India inflation data. Buying emerged in the second half taking the Nifty higher to end with gains of 92 points (0.5%) at 17952 levels. "Broader markets however closed on a mixed note. Except FMCG and consumer durables, all other sectors ended in green with metals and PSU banks gaining more than 1%.

US CPI data for the month of December fell to 6.5%, which is leading to expectation of less aggressive interest rate hikes by US Fed going ahead. On the domestic front, CPI inflation further eased to 5.72% in Dec, while IIP growth improved to 7.1% in Nov'22. IT results so far came in better than estimates, thus alleviating concerns with regards to growth slowdown on account of macro headwinds. Though the sector may see some more consolidation given macro uncertainties, we believe valuations have largely corrected and offers value buying at these levels. Banking sector will be in focus next week, reacting to the HDFC Banks numbers on Saturday. Overall the global sentiments are turning positive due to decelerating inflation pressures, which along with better than expected domestic economic data and stable IT results could give support to the markets and help to move higher," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.