INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Benchmark equity indices have turned rangebound amid economic uncertainty and earnings jitters
Investors are in wait-and-watch mode to see earnings catch up with valuations, though analysts are not sure that is happening anytime
soon.
Despite this, over three dozen largecap and midcap stocks on NSE could see strong price-wise action in the coming days
Some 41 stocks are looking strong on technical charts for a bounce, as suggested by moving average convergence divergence, or MACD.
The
momentum indicator signalled an bullish crossover on these counters, hinting at possible upsides
These counters have been witnessing strong trading volumes of late, lending credence to the emerging trend.
The list included Infosys, Asian
Paints, Jindal Steel - Power, United Spirits, JSW Steel and UltraTech Cement besides HDFC Life Insurance, Equitas Holdings, DCB Bank, Quess
Corp, GSPL, IGL, Dalmia Bharat Sugar and Tata Sponge Iron, among others
The MACD is known for signalling trend reversals in traded securities or indices
It is the difference between the 26-day and 12-day exponential moving averages.
A nine-day exponential moving average, called the signal
When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward
movement and vice versa.
Meanwhile 69 stocks are showing a bearish trend
They Bharti Airtel, DHFL, Allahabad Bank, Indiabulls Real Estate, Colgate-Palmolive and Petronet LNG.
RBL Bank, UCO Bank, Radico Khaitan,
PNB Housing Finance, Lakshmi Vilas Bank, VRL Logistics and The Mandhana Retail are also looking weak on technical charts
valuation ratio.
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.
As for Nifty50, it has been consolidating and its earlier support at
11,640 is acting as a key resistance
On the flipside, the 11,460-11,430 zone is the immediate support range to watch out for
The index is witnessing a time-wise correction
bears as long as Nifty50 trades below the swing high of 11,640, said Gaurav Ratnaparkhi of Sharekhan
For Nifty50, the 11,500 and 11,461 levels will be the key levels on the downside below which it will be prone to a larger
stock has shown upward momentum and vice versa
On Tuesday, the scrip traded 0.3 per cent higher at Rs 781.85 on NSE.
