INSUBCONTINENT EXCLUSIVE:
NEW DELHI: While benchmark equity indices are hovering around record high levels, as many as 52 stocks are showing signs of imminent
Many of these stocks have also been witnessing strong trading volumes of late, lending further credence to the emerging trend.
Stocks on
the list include Tata Motors, Sterlite Technologies, Reliance Naval, Jaiprakash Power Ventures, Praj Industries, Bajaj Hindusthan, Delta
Also on the list are Jindal Stainless, Gayatri Projects, Apollo Hospitals, Take Solutions and Aavas Financiers.
Some of these stocks are in
amid concerns over softening prices of optical fibre and cable in China
The company later clarified it has limited exposure to China's optical fibre market.
Reliance Naval shares have been witnessing a steady
downturn, but the company told stock exchanges last week it had no clue what was going on.
MACD is the difference between the 26-day and
12-day exponential moving averages and is known for indicating trend reversals in traded securities or indices
When the MACD goes above the signal line, it throws up a bullish signal, indicating that the price of the security may see an upward
movement and vice-versa.
Meanwhile, four stocks Godrej Properties, Shoppers Stop, Sastasundar Ventures and Crisil have witnessed upward
crossovers, signalling bullish sentiment on these counters.
However, analysts caution that the MACD indicator should not be seen in
single valuation ratio.
Traders should use other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series,
candlestick patterns and Stochastic to confirm an emerging trend, they say.
As for the broader market, while the benchmark indices remain
Kumar, Market Strategist, Reliance Securities, said one must use strict stop loss while venturing in this market.
Mazhar Mohammad of
ratio for the second day in a row on Monday signalled creeping weakness in the broader market
Sooner than later, we expect the current momentum to pave way for either a sideways move or a corrective swing towards the 11,230 level,
Understanding MACDA closer look at the stock chart of Sterlite Technologies reveals every time the MACD line has breached below the signal
line, the stock has shown an upward momentum and vice versa
On Tuesday, the scrip traded 2 per cent higher at Rs 223 on NSE.
