Undervalued stocks crossing 200 DMA (200-Day Moving Average) can be a great place to begin if you’re looking for some strong investing ideas. Many experienced investors and traders look for the 200 DMA closely, because when a stock moves over it, it often hints at a positive breakout and a possible rising trend.
We have picked 9 Undervalued Stocks Crossing 200 DMA This Week in July 2025 that have exceeded their 200 DMA and are showing signs of growth. If the market remains steady, these stocks could offer some solid returns in the coming weeks and months.
Why the 200 DMA Is Important
The 200-Day Moving Average strategy for stock breakout is one of the most popular tools within traders and investors. It shows the average stock price above the last 200 days and helps find long-term trends.
If a stock stays under the 200 DMA for a while and then crosses over it, then it mostly means the stock is gaining momentum.
When you combine these stocks with the ones that are undervalued, then it gives you a good mix of growth potential and low risk.
To sum up, these are not just technically strong stocks, they also have solid business foundations in the market. You can track such trends using official tools like the NSE 200 DMA stock data.
9 Undervalued Stocks Crossing 200 DMA This Week
Here are 9 undervalued breakout stocks July 2025 that lately crossed above their 200 DMA and may be getting ready for a positive breakout in the future:
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Hindustan Zinc
CMP: ₹680 approx.
It crossed 200 DMA with solid earnings and steady global zinc prices.
It is a good dividend paying stock, which is ideal for cautious investors. -
Tata Motors
CMP: ₹920 approx.
It is rising in domestic sales and positive talk around its EV plans in the future.
The move above 200DMA shows continued buying interest. -
Canara Bank
CMP: ₹124 approx.
Canara Bank has a strong loan growth and better asset quality among PSU banks.
Its 200 DMA crossing could be the sign of a fresh rally in banking stocks. -
Coal India
CMP: ₹480 approx.
Coal India is regularly paying high dividends and seeing stable production growth in the market.
The breakout above 200 DMA could mean more upside in the energy sector. -
SBI Cards & Payment Services
CMP: ₹835 approx.
It is usually benefiting a lot from higher credit card spending and improved quality of loans.
Crossing 200 DMA signals rising investor confidence. -
Ashok Leyland
CMP: ₹213 approx.
The sales of commercial vehicles are rising up again in the market.
It is undervalued as compared to the rivals, and the 200 DMA crossover suggests positive strengths. -
Zee Entertainment
CMP: ₹168 approx.
This undervalued stock could be in for a comeback, especially if there is good news on the merger front.
The recent 200 DMA move is a sign to watch this stock closely. -
Indian Hotel Company Ltd (IHCL)
CMP: ₹580 approx.
The hospitality selector is rising again in the market.
The stock is still undervalued and now trading above its 200 DMA in the stock market. -
IndusInd Bank
CMP: ₹1565 approx.
This undervalued stock has strong growth in retail loans and improving in asset quality.
The 200 DMA rally in the stock market shows rising momentum compared to larger private banks.
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How to Use 200 DMA in Your Strategy
Using the 200-day moving average strategy in Indian stocks is smart, but you need to mix it with other checks. Here is how to use it properly:
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Look for increased trading volumes, because this shows the real interest of investors.
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Make sure that the company has solid fundamentals, which means solid growth, profits, and low debt.
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Keep watch for positive news or sector support like government policies or rise in demand.
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Set a stop-loss, so that you can cut your losses if the breakthrough doesn’t work out.
By doing all this, you are not only just following charts blindly but you are also investing with discipline and logic. You can also learn more about investor best practices at SEBI Investor Education Portal.
Should You Buy These Stocks Now?
These undervalued stocks breaking 200 DMA in NSE 2025 are absolutely worth putting on your watchlist. But make sure to do these things before investing:
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Do your own in depth research.
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Check if the recent uptrend has strong volume and momentum.
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Be careful if broader market conditions become weak.
It doesn’t matter how strong a stock looks, managing the risk is always a very important factor to you. If you’re not sure, talk to a financial advisor.
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Conclusion
Using technical indicators like 200 DMA for stock investing is a tried and tested strategy. It helps you enter trades when the trend is rising and often gives you a better risk-reward ratio.
The 9 stocks listed above have both solid fundamentals and technical signals. If you are looking to take advantage of market momentum without taking too much risk, then these stocks could be smart picks for you.
Just remember to stay updated, watch how the stock behaves, and have a clear entry and exit plan. Happy wealth building!
FAQs
What does crossing the 200 DMA mean for a stock?
It mainly shows that the stock is moving from a weak patch to a stronger one. It’s probably a sign of a long-term uptrend.
Are all stocks crossing 200 DMA good to buy?
Not all the time. You should mix this with basic analysis by only buying if the company’s business is doing well.
Is it safe to invest in undervalued stocks above 200 DMA?
It can be safer than going for falling stocks. But you should always use a stop-loss to shield your capital.
How often should I check if a stock has crossed its 200 DMA?
Checking once a week is enough if you are a medium-term investor. For short-term investors, daily check works fine.
Can the 200 DMA strategy be used for long-term investing?
Yes. Many long-term investors use it to make sure that they are going for stocks that are in trend.