Check out the penny stocks with ‘Golden Cross’ to buy

Stock markets

by 5paisa Research Team Last Updated: Sep 07, 2023 - 05:05 pm 3.8k Views
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The Indian stock market had seen some profit booking after hitting a new peak early last month but has been slowly creeping up.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is best left untouched.

One of the technical marks to pick or move away from a stock is to see which ones have a ‘golden cross’ and which others have the ‘death cross’ etched on their back. Both use the concept of moving averages to show trend lines on what the charts foretell about the possible future trajectory of a stock.

The Golden Cross strategy picks stocks whose simple moving average, or SMA, for the last 50 days has crossed above their SMA for 200 days. This is seen as a critical technical indicator for stocks that could be in the bullish zone.

On the flip side, the Death Cross strategy picks stocks whose 50-day SMA has sunk below their 200-day SMA. This is seen as a critical technical indicator for stocks that could be in the bearish zone.

We ran an exercise to see which stocks carry the Golden Cross.

In particular, we looked at penny stocks with price of the share under Rs 20 each. Penny stocks are very volatile but if played carefully can bring high returns. It is more specifically meant for day traders but can also be used as an effective investment strategy for long term investors.

However, one strategy which is usually not advised for penny stocks is buy and forget. One should keep an eye on the price as these stocks have a tendency to shoot up suddenly and also skid sharply. If one is looking to make quick gains, it is advisable to keep checking for sharp movements and act accordingly.

This list of stocks, which had a crossover date over the last two weeks and has a price under Rs 20 include two dozen names. These include Sikozy Realtors, Unishire Urban Infra, Swasti Vinayaka Art, Gujarat Lease Fin, Silver Oak Comm, KCL Infra Projects, Vertex Securities and IL&FS Transportation.

This list also includes Agio Paper & Ind, Burnpur Cement, Future Market Network, Himachal Fibres, Devine Impex, First Fintec, Landmark Property, Rajeswari Infra, Croissance, Fraser & Company, Ind-Swift, Orient Green Power, Beryl Securities, Media Matrix Worldwide, Indowind Energy, Kkalpana Plastick and Piccadily Sugar.

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