The momentum indicator signalled bullish crossovers — a sign of bullish undertone — on these counters, hinting at possible upsides in the days ahead. The list included Nifty50 names such as NTPC, HDFC Life, Asian Paints and BPCL.
Dabur India, NHPC, Godrej Properties, Orient Cement, Emami, Avenue Supermarts, Cyient, Ircon International and DCB Bank are some other stocks reflecting bullish sentiment. Somany Ceramics, Praj Industries, FACT, PC Jeweller, Tata Coffee and Star Cement are other stocks looking strong on technical charts.
When the MACD crosses above the Signal Line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Data showed 16 stocks are showing bearish trends. They are Grasim Industries, Bajaj Auto, Coforge, Shalby, Den Networks, JB Chemicals, TeamLease Services and Godrej Agrovet.
This is because MACD is a trend-following indicator. Though traders can increase the sensitivity of MACD by using shorter moving averages for computing MACD (e.g. 5-day and 12-day moving averages), the lag effect will still be there. Hence, traders should make use of other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series, candlestick patterns and Stochastic to confirm an emerging trend.
On Tuesday, Nifty50 reclaimed the 11,900-mark and was trading at 11,910.55, up 37.50 points or 0.32 per cent.
Analysts said that the index has not seen a follow-up fall following Thursday's selloff, which is a sign of relief. But they feel that the index remains vulnerable to selling pressure. The range of 11,900-926 could pose as immediate resistance for the index, they said. The index has so far hit a high of 11,924.30 during the day.
Sameet Chavan of Angel Broking said Nifty50 is back to the safer zone and the immediate support base has now shifted higher at 11,780-11,820.
"On the higher side, resistance is seen around the 12,000 mark and once this is taken out, our market would gear up for the next leg of the rally. Traders are advised to trade with a positive bias and look for such sectors which are in momentum and are providing good trading opportunities," Chavan said.
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5 Comments on this Story
Srinivasan43 days ago
It's a paid article to trap the retail investors. No PSU stock is worth to invest or hold.
Sunirmal Sinha43 days ago
Only HdDFC life ,Bpcl to some extent are considerable ,all others are bogus. To buy these stocks. I think expert opinion are not required. Stock market is now like microwaves,every one or two days intervals it changes abruptly because lack of faith in stable market policy of govt & uncertainty in economic situation both for full market response to govt initiative & Corona situation. Investor always opting for short term profit rather long trem uncertainty in policy as well as global economic slowdown.
Kaniz Zamil43 days ago
how much did you get for this promo adv.shame.