3 Stocks that Surged Past 200-DMA Resistance Despite Market Weakness

In a market where nearly 96% of stocks are falling, spotting stocks that break through key technical levels offers valuable clues for traders and investors. Recently, three notable stocks—Varun Beverages, L&T, and Power Finance Corporation—broke their 200-day moving average (200-DMA) resistance, signaling potential bullish momentum despite broader market weakness. This post explores the technical significance of these breakouts, the factors driving each stock, and what this means for momentum investors and technical traders.

Why the 200-DMA Resistance Matters

The 200-day moving average is a widely followed technical indicator that smooths out price data over a long period. When a stock breaks above this level, it often signals a shift from bearish to bullish sentiment. This technical significance means that breaking the 200-DMA resistance can attract momentum traders looking for strong buy signals.

Currently, only 19 stocks are trading above their 200-DMA, making these breakouts stand out even more. These contrarian breakouts are rising while the majority of stocks are falling, highlighting their strength in a weak market.

Varun Beverages Broke 200-DMA: PepsiCo Franchisee Strength

Varun Beverages, a major PepsiCo franchisee, recently broke its 200-DMA resistance, drawing attention from technical traders and investors alike. This breakout reflects the company’s strong operational performance and market position.

• Why it matters: Varun Beverages breakout has attracted over 14,800 searches, showing growing interest.

• Underlying strength: The company benefits from PepsiCo’s brand power and expanding beverage portfolio.

• Technical outlook: Breaking the 200-DMA resistance suggests renewed buying interest and potential for further upside.

  
  

For momentum investors, this breakout signals a possible entry point, especially given the company’s solid fundamentals and brand association.

L&T Broke 200-DMA: Budget ₹12.2L Crore Capex Beneficiary

Larsen & Toubro (L&T) also joined the elite group of stocks breaking above their 200-DMA. The stock breakout is supported by the government’s ₹12.2 lakh crore capital expenditure (capex) plan, which positions L&T as a key beneficiary.

• Market interest: L&T stock breakout 200 DMA has seen around 12,100 searches, reflecting strong market focus.

• Capex impact: The massive budget allocation for infrastructure and development projects is expected to boost L&T’s order book.

• Technical significance: The 200-DMA resistance broken signals a positive shift in investor sentiment.

  
  

Technical traders tracking breakouts will find L&T’s rally compelling, as it combines strong policy support with a clear technical buy signal.

Power Finance Corporation Rallied: Power Sector Financing

Power Finance Corporation (PFC) has rallied past its 200-DMA resistance, driven by its role in financing the power sector. This breakout is notable given the sector’s importance in India’s infrastructure growth.

• Search trends: Power Finance Corporation rally has generated about 9,900 searches, indicating rising interest.

• Sector role: PFC supports power projects through financing, making it a critical player in the sector’s expansion.

• Technical breakout: The 200-DMA resistance broken marks a bullish phase, attracting momentum investors.

  
  

For shareholders and technical pattern students, PFC’s breakout offers a clear example of how sector fundamentals and technical signals align.

What These Breakouts Mean for Traders and Investors

These three stocks breaking their 200-DMA resistance amid a weak market highlight several key points:

• Contrarian breakouts: Rising while 96% of stocks are falling shows strength and potential leadership.

• Technical significance: The 200-DMA resistance broken is a widely accepted bullish signal.

• Selective opportunities: Only 19 stocks are above 200-DMA, making these breakouts part of an exclusive group.

• Sector and fundamental support: Each stock benefits from strong underlying factors—brand strength, government capex, or sector financing.

  
  

Momentum investors can use these breakouts as actionable buy signals, while technical traders can study these patterns to refine their strategies.

Key Takeaways for Technical Traders and Momentum Investors

• Monitor stocks breaking above 200-DMA resistance for potential bullish trends.

• Look for fundamental support behind technical breakouts to improve trade confidence.

• Use volume and price action confirmation to validate breakouts.

• Keep an eye on market breadth; contrarian breakouts can signal sector or stock leadership.

• Follow search trends like Varun Beverages breakout, L&T stock breakout 200 DMA, and Power Finance Corporation rally to gauge market interest.