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 829
| Stock | Change % | % vs SMA 200 | SMA 200 |
|---|---|---|---|
| TBZTribhovandas Bhimji Zaveri Limited | +5.00% | +211.87% | ₹203.19 |
| BODALCHEMBodal Chemicals Limited | +3.39% | +188.95% | ₹68.42 |
| SANGINITASanginita Chemicals Limited | +2.00% | +140.71% | ₹30.11 |
| MOREPENLABMorepen Laboratories Limited | +1.20% | +128.78% | ₹53.48 |
| INDORAMAIndo Rama Synthetics (India) Limited | +17.02% | +128.38% | ₹46.66 |
| KABRAEXTRUKabra Extrusion Technik Limited | -0.81% | +124.38% | ₹301.31 |
| STLTECHSterlite Technologies Limited | -0.63% | +120.95% | ₹368.24 |
| SHILPAMEDShilpa Medicare Limited | +4.87% | +116.11% | ₹495.49 |
Stocks above the 50 DMA 651
| Stock | Change % | % vs SMA 50 | SMA 50 |
|---|---|---|---|
| BODALCHEMBodal Chemicals Limited | +3.39% | +97.83% | ₹99.94 |
| TBZTribhovandas Bhimji Zaveri Limited | +5.00% | +87.21% | ₹338.50 |
| INDORAMAIndo Rama Synthetics (India) Limited | +17.02% | +68.64% | ₹63.18 |
| AHCLAnlon Healthcare Limited | +14.59% | +65.07% | ₹15.90 |
| STLNETWORKSTL Networks Limited | +4.98% | +62.04% | ₹27.83 |
| RAYMONDRaymond Limited | +10.94% | +58.04% | ₹686.52 |
| BHAGERIABhageria Industries Limited | +7.96% | +50.34% | ₹240.39 |
| GMMPFAUDLRGMM Pfaudler Limited | +2.74% | +48.42% | ₹1,016 |
Stocks below the 200 DMA 627
| Stock | Change % | % vs SMA 200 | SMA 200 |
|---|---|---|---|
| AQYLONAqylon Nexus Limited | +4.95% | -92.23% | ₹242.90 |
| INDOTHAIIndo Thai Securities Limited | +1.55% | -85.52% | ₹235.39 |
| INDIAGLYCOIndia Glycols Limited | -3.00% | -73.21% | ₹954.95 |
| RELINFRAReliance Infrastructure Limited | -1.98% | -67.12% | ₹149.04 |
| SUMEETINDSSumeet Industries Limited | +4.92% | -61.31% | ₹25.92 |
| HEGHEG Limited | +4.83% | -56.03% | ₹565.10 |
| ATALREALAtal Realtech Limited | -2.16% | -48.03% | ₹27.03 |
| VEDLVedanta Limited | -2.65% | -45.39% | ₹476.99 |
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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.
