INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Solid buying in financials, auto, pharma and oil stocks lifted domestic equity indices for third day in a row on Monday
momentum indicator moving average convergence divergence, or MACD, signalled upward crossovers for 151 stocks on NSE.
MACD is known for
signalling trend reversals in a traded security or index.
Among the stocks that saw bullish crossovers were Jet Airways, Sun Pharma, IDFC
Bank, IndianOil, SAIL, NCC, Lupin, Hindalco and Bharat Petroleum
Some of these counters have also been witnessing strong trading volumes lately, adding further credibility to the emerging trend.
Other
stocks that saw bullish crossovers included Unitech, Oriental Bank of Commerce, NCC, Rural Electrification Corporation, Allahabad Bank,
India Cements, Rashtriya Chemicals, Edelweiss Financial Services, Castrol India, Indiabulls Housing Finance and Can Fin Homes.
MACD is a
trend-following momentum indicator, and is the difference between the 26-day and 12-day exponential moving averages
When the MACD crosses above the signal line, it gives a bullish signal on the charts, indicating that the price of the security may see an
upward movement, and vice versa.
MACD alone may not be a sufficient signal to help take an investment call
Traders should make use of other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series, candlestick patterns
and Stochastic to confirm an emerging trend
Retail investors should consult financial experts before buying or selling a stock based on such technical indicators.
MACD charts also
They included Nandan Denim, Manpasand Beverages, SH Kelkar Company, Monte Carlo Fashions and GOCL Corporation
On Monday, the 50-share Nifty index rose 83.50 points, or 0.79 per cent, to close at 10,688
It hit the 10,700 level on an intraday basis, but saw selling pressure towards close
On Tuesday, the index will need to trade consistently above the 10,700 level to retain the same bullish undertone
Chartviewindia.in.
Understanding MACDA close look at the chart of Sun Pharma shows whenever the MACD line has crossed above the signal line,
the stock has always shown an upward momentum and vice versa
Shares of the company closed 7.11 per cent higher at Rs 499.70 on May 28.
