Share market update: MACD chart shows Bajaj Finance, Power Grid among stocks set for rally

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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 journey.

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 ‘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. 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 around 11:30 am.

Source: Economic Times