INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Momentum indicator Moving Average Convergence Divergence (MACD) shows shares of Bajaj Finance, Sintex Plastics Technology and
Power Grid Corporation of India have witnessed an upward crossover, or bullish crossover, indicating that they have just begun an upward
Finolex Industries, PNB Gilts, Mahindra Lifespace Developers, Whirlpool of India, Jubilant Industries, MJCO, Zuari Global, Godawari Power
Ispat, Neuland Laboratories, Shree Rama Multi-Tech, Somany Ceramics, Ador Welding, Thiru Arooran Sugars, Sharda Motor Industries, Times
Guaranty, JMA, Uniphos Enterprises and Shyam Telecom too were among the stocks that witnessed bullish crossover.
Some of these counters have
also been witnessing strong volumes, adding further credibility to the emerging trend
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices
MACD is the difference between 26-day and 12-day exponential moving averages
A 9-day exponential moving average, called the 's ignal line', is plotted on top of the MACD to show 'buy' or 's ell' opportunities
A 'buy' signal occurs when the MACD rises above its signal line and vice-versa
However, the MACD indicator alone may not be sufficient to take an investment or trading call.
Traders should make use of other indicators
such as Fibonacci series, RSI, candlestick patterns, Bollinger Bands and stochastic to confirm any trend
It is advisable to consult a financial expert before taking any buy or sell call on a stock based on chart reading
Market sentiment improved a little as buying in Infosys, Reliance Industries, HDFC Bank, HDFC, Kotak Mahindra Bank and Tata Consultancy
Services lifted Sensex and Nifty up.
The NSE Nifty index was trading 5 points up at 11,028, while the BSE Sensex was up 80 points at 36,629
