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These 60 stocks are poised for good run, charts say so

Some of these counters have been witnessing strong volumes, adding further credibility.

, ETMarkets.com|
Updated: Aug 22, 2017, 03.37 PM IST
0Comments
The MACD is a trend-following momentum indicator, which shows a relationship between two moving averages.
The MACD is a trend-following momentum indicator, which shows a relationship between two moving averages.
NSE benchmark Nifty50 slipped for the second straight session on Monday and tested several short-term moving averages, before barely managing a close below the 9,750 mark.

However, momentum indicator Moving Average Convergence Divergence, or MACD, showed some 61 stocks have witnessed an upward crossover or bullish crossover on NSE, indicating that they are poised to begin an upward journey.

Stocks that witnessed bullish crossovers include Rain Industries, Dish TV, Shilpi Cable, Nalco, Essar Shipping, Kwality, Granules India, HT Media, Future Enterprises and Shalimar Paints.

Some of these counters have been witnessing strong volumes, adding further credibility to the emerging trend.

National Fertilizers, Kajaria Ceramics, Mayur Uniquoters, Kiri Industries, Bliss GVS Pharma, Vipul Ltd, Repro India, Kohinoor Foods, Lux Industries, TRF, Persistent Systems, Suprajit Engineering and Gokul Agro are among the other stocks that witnessed bullish crossovers on Monday.

These 60 stocks are poised for good run, charts say so

The MACD is a trend-following momentum indicator, which shows a relationship between two moving averages. MACD 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 ‘sell’ opportunities. A ‘buy’ signal occurs when the MACD rises above the signal line and vice-versa.

But the MACD indicator alone may not be sufficient to help take an investment 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 buying or selling a stock based on such technical indicators.

Also on Monday, some 24 stocks witnessed bearish crossovers on NSE, signalling a longer bear grip on these counters. The list had names like Vedanta, NTPC, Dwarikesh Sugar, Cipla, Arvind, Uttam Sugar Mills, Magma Fincorp and Oil India, among others.

These 60 stocks are poised for good run, charts say so

The 30-share index settled 265 points, or 0.84 per cent, down at 31,258 on Monday, while NSE’s Nifty50 settled 83 points, or 0.84 per cent, down at 9,754.

Chandan Taparia, Associate Vice-President, Analyst-Derivatives, Motilal Oswal Securities said, “Rising volatility with falling Put-Call ratio suggests that the bears are tightening their grip on the market. As long as the VIX does not stabilise below the 13-12.50 levels, it would be tough for the market to hope for a smooth ride.”

“On the hourly chart, the Nifty has posted the trend line breakdown with intermediate resistance at 9,880. With supportive oscillator RSI also turning down, it has added weakness to the market. If the Nifty50 manages to sustain below the 9,800 mark, we may see it fall further towards the recent bottom,” said KIFS Trade Capital.

Understanding MACD
These 60 stocks are poised for good run, charts say so

A close look at the chart of Shalimar Paints shows whenever the MACD line has crossed above the signal line, the stock has always shown an upward momentum.

A similar crossover was seen on Monday when the Nifty50 settled near the 9,750 mark. Shalimar Paints ended the day 3.61 per cent higher at Rs 215.

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