Stocks To Buy: 9 Quality Stocks Trading Below 200-day Moving Averages

Here are a list of 9 stocks that are trading below their 200-day moving averages. We take a look at brokerage recommendations of the past to see if they are worth buying. Please be informed, we are taking brokerage recommendations as we do no make "buy", "sell" or hold calls.

Buy the Wipro stock

The stock of Wipro is available at Rs 409, as against the 200-day moving average of 419.87. ICICI Direct had noted in a report earlier in January that Wipro's share price has grown by 1.6x over the past five years (from Rs 245 in January 2018 to Rs 393 levels in January 2023). The brokerage has changed its rating on the stock from HOLD to BUY. ICICI Direct now has a price target of Rs 455 on the stock, in a period of 12-months. The last market price of the stock of Wipro was Rs 409.

Aarti Industries

Aarti Industries stock is way below its 200-day moving averages. In fact, the stock is trading at Rs 531.40, as against the 200-day moving average of Rs 728.13.

There are no recent reports of Aarti Industries from leading brokerage houses. However, in November 2022, brokerage firm Anand Rtahi had a "buy" on the stock. "The company is positive about the long-term performance as multiple capex plans (+Rs30bn over FY23-FY25) are coming on stream in a phased manner to add capacity in the chloro-toluene value chain, set up multi-purpose plants, value-added and specialty products and custom manufacturing. We maintain our Buy rating at a revised target price of Rs 800, valuing the company at 33x FY25e (adjusting for the hiving off of the pharma business)," Anand Rathi report had said.

Tech Mahindra

The stock of Tech Mahindra is available at Rs 1009, against its 200-day moving average price of Rs 1068. "Tech Mahindra is currently trading at a valuation with a P/E multiple of 15.9x/13.3x on FY23E/FY24E earnings. The story is premised on pipeline commentary, improved services portfolio (design, engineering and consulting) & acquisition synergies, and 5G-related spending and reduction in the attrition rate and hence we are assigning a P/E multiple of 15.5x to the FY24E estimated EPS of Rs 76.2 to arrive at a target price of Rs 1,181, with an upside of around 16.4%. Accordingly, we have changed our rating to a "BUY" on the stock of Tech Mahindra for "Accumulate" will maintaining same target price," Anand Rathi has said.

LIC & LTI Mindtree

LIC and LTI Mindtree are other stocks that are trading way below their 200 day moving averages. Generally, technical analysts tend to believe a fall below the 200-day moving average tend to signal weakness in stocks. However, investors may do well to check with analysts before buying into any of these stocks. Both, LIC and LTI Mindtree have been seeing weakness in their stocks over the last few weeks. 

Lux Industries, Sanofi and HDFC Life are the other stocks trading below their 200-day moving averages.

Disclaimer

The stocks have been picked from select broking houses. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.