Tech charts show over 70 stocks are ready for big rally; do you own them?
Despite the stock correction in last two sessions, momentum indicator moving average convergence divergence, or MACD, shows over 70 stocks on BSE have witnessed an upward crossover or bullish crossover, indicating that they have started on an upward trajectory.
The list of stocks that have witnessed bullish crossovers includes JK Tyre, Kwality, NBCC, Sunil Industries, TVS Srichakra, VST Industries, Simplex Realty, Warren Tea and Jindal Worldwide, among others (see table).
Some of these names have been witnessing strong volumes, adding further credibility to the emerging trend.
Stampede Capital, Haldyn Glass, Hindustan Motors, TT and Orient Abrasives are other stocks that witnessed bullish crossovers on Friday.
The MACD is a trend-following momentum indicator that shows the relationship between two moving average of prices. MACD is the difference between a 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 show ‘buy’ or ‘sell’ opportunities. A ‘buy’ signal occurs when the MACD rises above its signal line and vice-versa.
But a single ratio does not tell you whether to buy or sell a stock. The MACD indicator alone may not be sufficient to take an investment or trading call.
Traders should look at other indicators such as RSI, Fibonacci series, candlestick patterns, Bollinger Bands and stochastic to confirm such a trend.
The NSE Nifty began last week with a gap up. But after hitting an all-time high of 9,274 and erasing early gains, the index settled the week below the 9,200 level on account of profit taking. Given the downtick in Friday’s session, Nifty breadth turned negative with all sectoral indices settling in the red.
According to IIFL, the recent price structure shows volatile move near the 9,200 mark for the Nifty50 index, and such price volatility cannot be ruled out when the market trades near a crucial zone.
The 9,270 and 9,310 levels are likely to act as supply points in the near term. The Nifty50 could consolidate if the immediate support of 9,165 is decisively held. The midpoint of the recent rally from 9,019 to 9,274 is placed at 9,145, and any decisive break below the same could mean a change in market sentiment on the short-term charts.
Understanding MACD
If you closely look at the chart of Kwality, it shows whenever the MACD line crossed above the signal line, the stock has always shown an upward momentum.
The crossover was recorded last week when the Nifty50 advanced for the second straight week and ended 24.55 points, or 0.27 per cent higher at 9,198 on April 7 rising from the 9,173 level on March 31, 2017.
The list of stocks that have witnessed bullish crossovers includes JK Tyre, Kwality, NBCC, Sunil Industries, TVS Srichakra, VST Industries, Simplex Realty, Warren Tea and Jindal Worldwide, among others (see table).
Some of these names have been witnessing strong volumes, adding further credibility to the emerging trend.
Stampede Capital, Haldyn Glass, Hindustan Motors, TT and Orient Abrasives are other stocks that witnessed bullish crossovers on Friday.
The MACD is a trend-following momentum indicator that shows the relationship between two moving average of prices. MACD is the difference between a 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 show ‘buy’ or ‘sell’ opportunities. A ‘buy’ signal occurs when the MACD rises above its signal line and vice-versa.
But a single ratio does not tell you whether to buy or sell a stock. The MACD indicator alone may not be sufficient to take an investment or trading call.
Traders should look at other indicators such as RSI, Fibonacci series, candlestick patterns, Bollinger Bands and stochastic to confirm such a trend.
The NSE Nifty began last week with a gap up. But after hitting an all-time high of 9,274 and erasing early gains, the index settled the week below the 9,200 level on account of profit taking. Given the downtick in Friday’s session, Nifty breadth turned negative with all sectoral indices settling in the red.
According to IIFL, the recent price structure shows volatile move near the 9,200 mark for the Nifty50 index, and such price volatility cannot be ruled out when the market trades near a crucial zone.
The 9,270 and 9,310 levels are likely to act as supply points in the near term. The Nifty50 could consolidate if the immediate support of 9,165 is decisively held. The midpoint of the recent rally from 9,019 to 9,274 is placed at 9,145, and any decisive break below the same could mean a change in market sentiment on the short-term charts.
Understanding MACD
If you closely look at the chart of Kwality, it shows whenever the MACD line crossed above the signal line, the stock has always shown an upward momentum.
The crossover was recorded last week when the Nifty50 advanced for the second straight week and ended 24.55 points, or 0.27 per cent higher at 9,198 on April 7 rising from the 9,173 level on March 31, 2017.
