INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Nearly 50 stocks on NSE look set to rally in the coming days even though NSE benchmark Nifty50 has fallen below its crucial
50-day and 200-day averages amid mounting tensions between India and Pakistan
Broking.
Forty-nine stocks on NSE have shown an upward bias, as suggested by momentum indicator moving average convergence divergence, or
The list included stocks like SBI, Hero MotoCorp, Apollo Hospitals and IGL.
The technical indicator has signalled an upward crossover,
meaning a bullish signal, on these counters
This is coupled with the fact that many of these stocks have also been witnessing strong trading volumes of late adds credibility to the
State Bank Group, meanwhile, said as much as Rs 7,951.29 crore involving 1,885 cases of fraudulent activities have come to light in the
first nine months of this fiscal year
Other stocks on the list include Pidilite Industries, Apollo Hospitals, Berger Paints, Colgate-Palmolive, MTNL Glenmark Pharma, Mastek, LT
Technologies and Siemens.
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 line, is plotted on top of the MACD to reflect 'buy' or 's ell' opportunities
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, 27 stocks showed bearish crossover on the daily chart
They included NHPC, Adani Ports, max India, Future Retail, DB Corp, Godfrey Philips, HT Media and VR Retail
The MACD indicator should not be seen in isolation, as it may not be sufficient to take a trading call, just the way a fundamental analyst
cannot give a 'buy' or 's ell' recommendation using a single 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 far as Nifty50
is concerned, daily strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective
a crucial support for Nifty50 going forward while it is likely to face resistance in the 10,880-10,940 range.
UNDERSTANDING MACDA close look
at the stock chart of Hero MotoCorp shows whenever the MACD line has breached above the signal line, the stock has shown an upward momentum
and vice versa.
On Thursday, the scrip traded 0.20 per cent higher at Rs 2,683.
