INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Momentum indicator moving average convergence divergence, or MACD, on Monday showed bullish crossovers on 30 counters on NSE
Among the stocks that saw bullish crossovers were Exide Industries, InterGlobe Aviation, Jubilant Foodworks, Mahindra Mahindra, Talwalkars
Better Value Fitness, Jubilant Life Sciences, GRUH Finance, JMC Projects, J Kumar Infraprojects and Kiri Industries.
Some of these counters
have also been witnessing strong trading volumes of late, adding further credibility to the emerging trend.
Other stocks that saw this
bullish crossovers included Ashoka Buildcon, Vipul, Swan Energy, Saregama India, RPP Infra Projects, Supreme Industries, Zydus Wellness,
Electrotherm (India) and Healthcare Global Enterprises.
The MACD is known for signalling trend reversal in a traded security or index.
It
The stocks included Indo Count Industries, KEC International, Can Fin Homes, Bharti Infratel, Tejas Networks, NIIT, Triveni Turbine and
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, indicating that the price of the security may see an upward
movement and vice versa.
Market experts say the MACD alone may not be a sufficient indicator 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.
On Monday, the
Nifty50 climbed to a fresh closing high of 11,387, but ended up making a small bearish candle on the daily chart that resembled a Doji
pattern, suggesting that investors have turned indecisive at higher levels
limited gain, say analysts.
If the index consistently trades below the 11,368 level in the first hour on Tuesday, it may come under
The internal structure of the fifth leg, however, shows that it is not yet complete
Understanding MACDA close look at the Exide Industries stock chart 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 1.63 per cent higher at Rs 277.40 on August 6.
