52 Stocks Including Tata Motors, IDBI Bank, UPL Set to Rally. Signals MACD
52 stocks including Tata Motors, IDBI Bank, Adani Enterprises, NBCC and UPL, looked strong on momentum oscillator MACD or moving average convergence divergence today. Some of these stocks have climbed up to 13 per cent in Tuesday's trade so far.
At 9:40 am, IDBI Bank was trading 3.87 per cent higher at Rs 37.50, Adani Enterprises advanced 3.09 per cent to Rs 1,294.35, NBCC was up 3.25 per cent at Rs 42.90, UPL added 1.6 per cent to Rs 627.60. Tata Motors rose 0.7 per cent to Rs 295.05
Other stocks looking strong on MACD indicators are The New India Assurance, Firstsource Solutions, RCF, KPIT Technologies, Ashoka Buildcon, Shreyans Industries and Welspun India. These stocks have gained up to 13 per cent today.
Tata Chemicals, Hindustan Zinc, Aurobindo Pharma, Atul, Sheela Foam, SMC Lifesciences, Xpro India and Renaissance Global have shown bearish trends.
The MACD indicator should not be seen in isolation, as it may not be sufficient to take a trading call, just the way a fundamental analyst cannot give a ‘buy’ or ‘sell’ recommendation using a single valuation ratio. 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, the Nifty50 topped 14,700 level, before earnings all the gains.
"The markets are still unsure of direction. Nifty has strong support at 14,400, which it is not breaking, and there is a stiff resistance at 14700, which it is unable to get past convincingly. Until either level is not taken out, we will not see a meaningful move," said Manish Hathiramani, Technical Analyst at Deen Dayal Investments.
Sameet Chavan of Angel Broking said, “Index traders must try to buy as close as possible to intraday supports and avoid carrying aggressive bets overnight.”
"As far as Nifty is concerned, 14,550-14,400 remains to be a sacrosanct support zone whereas we may see Nifty reclaiming 14,800-14,900 once it surpasses the 14,700 mark," he added.