Moving averages (SMA, EMA, 50 and 200 DMA)
The average closing price over a window, used to define the trend.
Technical indicators
Live NSE examples below
What is Moving averages?
A moving average smooths daily price noise into a line that shows the trend. 'DMA' (daily moving average) in Indian market usage usually means the simple average of the last N daily closes. The 200 DMA is the classic long-term trend line, the 50 DMA the medium-term one and the 20 DMA the short-term one. Whether a stock trades above or below them is the simplest trend definition there is.
Formula
SMA(N) = (sum of the last N closes) ÷ N
EMA(N): EMA_today = α × close + (1 − α) × EMA_yesterday, where α = 2 ÷ (N + 1)
% vs 200 DMA = (close − SMA200) ÷ SMA200 × 100
How to read it
- Price above a rising 200 DMA means a long-term uptrend; below a falling one, a downtrend.
- The EMA weights recent prices more heavily, so it turns faster than an SMA of the same length.
- The distance from the average measures how extended a move is. Stocks 40% above their 200 DMA are prone to sharp pullbacks.
- The share of all stocks above their 200 DMA is one of the best market-breadth gauges (see Market breadth).
Common mistakes
- Treating an average as an exact support price. It is a zone, and stocks routinely dip through it intraday.
- Using very short averages on illiquid stocks, where single trades move the average.
Live: NSE stocks matching this today
Stocks above the 200 DMA 707
| Stock | Change % | % vs SMA 200 | SMA 200 |
|---|---|---|---|
| TBZTribhovandas Bhimji Zaveri Limited | +0.08% | +118.45% | ₹277.94 |
| SPECTRUMSpectrum Electrical Industries Limited | -0.26% | +109.93% | ₹2,022.95 |
| SSWLSteel Strips Wheels Limited | -1.03% | +95.39% | ₹271.95 |
| KABRAEXTRUKabra Extrusion Technik Limited | +5.00% | +91.31% | ₹384.98 |
| CUPIDCupid Limited | +1.41% | +87.11% | ₹182.38 |
| MENONBEMenon Bearings Limited | +9.05% | +86.10% | ₹187.42 |
| BODALCHEMBodal Chemicals Limited | -4.64% | +85.67% | ₹87.15 |
| RAYMONDRaymond Limited | -1.69% | +81.93% | ₹621.49 |
Stocks above the 50 DMA 576
| Stock | Change % | % vs SMA 50 | SMA 50 |
|---|---|---|---|
| ARHAMArham Technologies Limited | +9.05% | +51.18% | ₹150.83 |
| HILINFRAHighway Infrastructure Limited | -0.40% | +41.57% | ₹50.63 |
| DCMSRINDDCM Shriram Industries Limited | -0.05% | +36.03% | ₹45.24 |
| PASHUPATIPashupati Cotspin Limited | -10.00% | +34.44% | ₹89.61 |
| NELCASTNelcast Limited | +2.09% | +33.86% | ₹124.08 |
| SSWLSteel Strips Wheels Limited | -1.03% | +32.27% | ₹401.72 |
| CUBEXTUBCubex Tubings Limited | +2.00% | +31.25% | ₹142.99 |
| UYFINCORPU. Y. Fincorp Limited | +4.72% | +30.63% | ₹22.60 |
Stocks below the 200 DMA 723
| Stock | Change % | % vs SMA 200 | SMA 200 |
|---|---|---|---|
| INDOTHAIIndo Thai Securities Limited | +4.99% | -83.61% | ₹187.49 |
| AQYLONAqylon Nexus Limited | +1.01% | -79.04% | ₹62.26 |
| BANSALWIREBansal Wire Industries Limited | +6.00% | -77.24% | ₹277.97 |
| BHAGYANGRBhagyanagar India Limited | -5.00% | -71.38% | ₹269.00 |
| INDIAGLYCOIndia Glycols Limited | +0.63% | -63.08% | ₹842.80 |
| RELINFRAReliance Infrastructure Limited | +1.99% | -56.19% | ₹114.37 |
| RAJESHEXPORajesh Exports Limited | +1.72% | -50.14% | ₹102.14 |
| RHETANRhetan TMT Limited | +0.30% | -45.68% | ₹24.80 |
Use it on Flash Finance
Frequently asked questions
Why is the 200-day moving average important?
It covers roughly ten months of trading and is watched by institutions, index funds' risk models and most trend-following systems, which makes it partly self-fulfilling. Price above it is the most common definition of a long-term uptrend.
Related concepts
Golden cross and death crossThe 50-day average crossing above (golden) or below (death) the 200-day average.Market breadthHow many stocks are participating in a market move, not just the index.MACD (Moving Average Convergence Divergence)Trend-following momentum from the gap between a fast and a slow moving average.VWAP and anchored VWAPThe average price paid, weighted by volume, over a chosen period.
