INSUBCONTINENT EXCLUSIVE:
The domestic equity market ended on a flat note on Tuesday as uncertainty over government formation in Karnataka hit market sentiment.
While
the Nifty50 settled almost flat at 10,801, momentum indicator moving average convergence divergence, or MACD, signalled downward crossovers
National Bank, ITC, HDFC Standard Life, Bank of India, Arvind, Tata Chemicals, KPIT Technologies, Exide Industries, Engineers India and
Adani Transmission.
Some of these counters have also been witnessing strong trading volumes of late, adding further credibility to the
emerging trend.
Other stocks that saw bearish crossovers included Snowman Logistics, Central Bank, Kalpataru Power, Info Edge, Dalmia
Bharat, Lux Industries and Lumax Industries.
MACD is a trend-following momentum indicator and is the difference between the 26-day and
12-day exponential moving averages
opportunities.
When the MACD slips below the signal line, it gives a bearish signal on the charts, indicating that the price of the security
may experience a downward trend or vice-versa.
However, the MACD alone may not be sufficient to help take an investment call.
MACD charts
also showed bullish crossovers on 24 counters on Tuesday, signalling opportunities to buy these stocks ahead of a new price spike.
The
stocks included JSW Steel, Power Grid, JBM Auto, V-Mart Retail, Sadbhav Engineering, VST Industries, and Somany Ceramics.
The 30-share BSE
Sensex settled 12.77 points, or 0.04 per cent, down at 35543.94 on Tuesday.
On further movement of the Nifty index, Chandan Taparia,
Derivatives and Technical Analyst, Motilal Oswal Financial Services, said as long as Nifty holds above the 10,785 level, it can extend its
6.89 per cent to 13.2625 in the previous trading session.
Understanding MACDA close look at the chart of Tata Motors stock showed whenever
the MACD line has crossed below the signal line, the stock has shown a downward momentum and vice versa.
Shares of the company closed 2 per
cent down at Rs 324 on May 14.
