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MACD shows Bajaj Finance, Bajaj Holdings & Investment among 15 stocks ready to rally

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NEW DELHI: Momentum indicator moving average convergence divergence, or MACD, on Thursday showed bullish crossovers on 15 counters on NSE.

Among the stocks that saw bullish crossovers were Bajaj Finance, Gravita India, Filatex India, Menon Bearings, Som Distilleries & Breweries, Maithan Alloys and RPG Life Sciences.

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

Other stocks that saw this bullish crossovers included Security and Intelligence Services (India), Orient Press, Bajaj Holdings & Investment, Schaeffler India, Gandhi Special Tubes, Crest Ventures and Steel Strips Wheels.

The MACD is known for signalling trend reversal in a traded security or index.

It also signalled bearish crossovers on 19 counters on NSE, indicating sell signals. The stocks included Indo Count Industries, KEC International, Can Fin Homes, Bharti Infratel, Tejas Networks, NIIT, Triveni Turbine and Gravita India.

MACD is a trend-following momentum indicator and 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.

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.

Market experts say the MACD alone may not be a sufficient indicator to help take an investment call. 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.

Retail investors should consult financial experts before buying or selling a stock based on such technical indicators.

Equity market was in the positive territory amid mixed global cues. Most sectors were in the green, led by realty and bank.

The NSE Nifty index was trading 33 points up at 11,483, while the BSE Sensex was up 158 points at 38,045 around 10:35 am.

In the Nifty index, 25 stocks were in the green and 25 in the red.

ICICI Bank, State Bank of India, Axis Bank, Hindalco Industries and Infosys were leading among Nifty scrips.

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