INSUBCONTINENT EXCLUSIVE:
NEW DELHI: As domestic equity indices struggled to recover from Monday mayhem, 25 stocks from the broader market showed strength on the
technical charts.
These stocks are also showing strong momentum, as per the moving average convergence divergence or MACD.
The momentum
indicator formed a bullish crossover on these counters, hinting at possible upside
Strong trading volumes on many of these counters are lending credence to the emerging trend.
The list included Ambuja Cements, Equitas
These stocks have just seen bullish crossovers on the momentum indicator
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
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.
Data also showed bearish trends on 26 counters
They included ICICI Bank, Aurobindo Pharma, SJVN, Adani Enterprises and Phillip Carbon.
Analysts said the MACD indicator should not be seen
recommendation using a single valuation ratio.
On Tuesday, NSE barometer Nifty50 turned flat despite seeing a strong start
and take Nifty towards the 12,070 mark
Its inability to push beyond the 11,913 level will confirm a resumption of the down-move, aiming the 11,560-11,200 zone, with limited
On the upside, the 11,900 level followed by 11,950 level would now be seen as immediate hurdles.
Understanding MACDA close look at the stock
chart of Ambuja Cements shows whenever the MACD line has breached above the signal line, the stock has shown an upward momentum and vice
On Tuesday, the scrip traded 1 per cent higher at Rs 212.
