INSUBCONTINENT EXCLUSIVE:
NEW DELHI: A recent opinion poll that predicted NDA retaining power in the upcoming elections has put the bulls in-charge on the Street.
NSE
barometer Nifty has broken above its three-month long consolidation range and is eyeing 78.6 per cent retracement of the September-October
2018 decline near 11,400 level
As such, 20 stocks look poised for a rally, according to momentum indicator moving average convergence divergence, or MACD
The gauge has signalled an upward crossover -- a sign of bullish undertone -- on these counters, hinting at a possible upside
Signs on the ground lend credence to the emerging trend
Many of these stocks have been witnessing strong trading volumes of late
The list includes Nifty constituents Bharti Airtel, Titan Company and other blue chips such as paints makers Asian Paints and Kansai
Nerolac, pharma firms Biocon and GSK Pharmaceuticals, Dabur India and Adani Transmission
Aditya Birla Fashion, Avenue Supermarts, Prestige Estates, Dr Lal Pathlabs, Future Lifestyle and Thyrocare Technologies are other prominent
names that figure in the list
MACD -- the difference between the 26-day and 12-day exponential moving averages -- is used for indicating trend reversals in traded
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 MACD goes above the signal line, it throws up a bullish sign, indicating that the price of the security may see an upward movement and
vice versa.
Meanwhile, three stocks Dhampur Sugar, Swan Energy and Atul have observed a downward crossover, signaling bearish sentiment on
these counters.
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' call using a single valuation ratio
Traders should use other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series, candlestick patterns and
side and expect this rally to extend towards 11,300-11,400 in days to come
The previous hurdle of 11,050-11,000 range is likely to play a sheet anchor role for the index
Traders should identify potential candidates, who are poised for blown up moves
Broking.
The index has moved above the immediate resistance of previous swing high of 11,118 levels (February 7) and closed higher
One may expect further upside for the short term
Titan Company reveals that every time the MACD line has breached above the signal line, the stock tended to show an upward momentum and vice
On Tuesday, the scrip traded 2 per cent higher at Rs 1,090.55 on the NSE.
