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Post-Budget trend shows nearly half of Nifty500 stocks trade below 50-DMA

Post Budget trend
Post Budget 2020-21, around 238 stocks have slipped below their 50-day moving average (DMA) while before the Budget, the numbers stood at 178. Among other moving averages, the scenario seems to be the same. For instance, stocks trading below 100-DMA before Budget were 162 which has now increased to 213 whereas stocks below 200-DMA before Budget were 189 but now stands at 206. 

The moving averages help to gauge the trend and the sentiment of the market. They are classified on the parameters of short-term, medium-term and long-term view. The most significant is 200-DMA which caters to a long-term sentiment whereas 100-DMA and 50-DMA focus on medium term and short term, respectively. 

Stocks like BASF India, Bharat Forge Ltd., ICICI Prudential Life Insurance Company Ltd, Oberoi Realty Ltd, Syndicate Bank, Jubilant Life Sciences Ltd, V-Guard Industries have slipped below the 50-DMA post Budget.

Major hits were seen in front runners such as ACC Ltd, Ashok Leyland, Housing Development Finance Corporation Ltd (HDFC), India Cements, and TVS Motor Company Ltd.

Overview of Nifty 500 Stocks
Stocks Below Moving Averages  Pre-Budget Post-Budget
50-DMA  178 238
100-DMA 162 213
200-DMA 189 206

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