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  • Here are stocks that are moving above their 50-day moving average

    Publish Date: October 05, 2018

    The first time man landed on the moon was quite something. Humans had beaten the odds and conquered space. In stock trading, a positive breakout is a bit like that.

    A positive breakout is the movement of the stock through an identified level of resistance, and it is indicative of growing bullishness. Smart traders who rely on technical analysis use simple moving averages (SMA) to spot potential opportunities. Even as domestic markets succumb to intensive selling, some stocks are witnessing positive breakouts. Here is a list of stocks that are moving above their 30-, 50-, 150-, and 200-day averages.


    Simply put, a moving average is the average price of a stock at a specified point in time. So, a moving average can be used to display a trend in the prices. Moving averages are able to give unique signals.

    Also read: Introduction to Technical Analysis

    As on 1 PM on October 5, there were nearly 20 stocks that were trading above their 50-day SMA. Apollo Hospitals was trading at Rs 1070.50 per share, above its 50-day SMA of 1068.07. Pharma giant Dr. Reddys Labs is also trading at Rs 2396 levels, which is above its 50-day SMA of Rs 2384.55. There are others like Tulsi Extrusions, Ravi Kumar Distilleries, Triveni Engineering and Bharat Shipyard.

    Also read: Even as markets slump, over 40 stocks show strong bullish bar reversal

    Do remember, a moving average can also function as a support or resistance for a stock. In an uptrend, a moving average can become a support level, acting like a floor for the stock. In a downtrend, a moving average may act as resistance or like a ceiling for the stock.

    Read our Trading Playbook for October 5 here

    Kindly note the traders should at the current juncture limit themselves to frontline stocks. Midcap and smallcap stocks are much more riskier.

    Click here for the detailed disclaimer on investments in securities market .

    Many traders look at a slightly longer-period SMA to play it safe. Stocks like Sonata Software, Lotus Eye Care, GlaxoSmithKline Pharma and Oracle Financial are trading above their respective 150-day SMA on October 5.

    If you look at an even longer period, then ICICI Bank, Seamec, and a bunch of sugar scrips like Mawana Sugars and Uttam Sugar have shown positive breakouts with closing values above their 200-day SMA.

    Read out technical view on markets here.

    Moving average can become a more powerful tool when multiple averages are combined. Multiple moving averages appeal to many investors who follow technical analysis. In fact, research shows that using two moving averages can serve as a very effective trading system.


    What is the biggest assumption regarding the use of moving averages? It is that markets are often trending. But the truth is that markets spend more time in consolidation mode.

    Nevertheless, there are also some stocks that have shown negative breakouts. This means these stocks are at present trading below their 50-, 150- and 200-day simple moving averages.

    Also read - Using Technical Indicators to Analyse Stocks

    Stocks trading below their 50-day SMA include Tata Steel, NALCO, NMDC, L&T Infotech, Hikal, Esab India, Biocon, Suven Life Sciences, Bayer Cropscience and Atul.

    In the 150-day SMA list of negative breakouts are scrips including GAIL, Mahindra CIE, HUL, Zydus Wellness, Bosch and SBI. In the 200-day SMA list are GlaxoSmithKline Consumer, NTPC, Britannia, Hind Motors, and Syngene.

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    Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing. Our research should not be considered as an advertisement or advice, professional or otherwise. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and the like and take professional advice before investing. By referring to any particular sector, Kotak Securities Limited does not provide any promise or assurance of favourable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.