Eurotex, Borosil Renewables among stocks with ‘Death Cross’ after the market rally
The Indian stock market has been trying to reclaim the lost ground after seeing bouts of correction over the last few months. The benchmark indices, which were more than 1.5% higher on Tuesday, are now just around 3% shy of their all-time highs.
Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the picking 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 have got the Death Cross on their back over the last one week.
This list has around 30 names. These include: Eurotex Industries, Lypsa Gems, Shah Alloys, Shree Global Tradefin, Phyto Chem (India), Cosmo Ferrites, Borosil Renewables, Kiran Print Pack, Beeyu Overseas and United Interactive.
This packs also includes: KJMC Corporate, Sawaca Business, Compucom Software, Pankaj Polymers, Ecoplast, Adarsh Plant, Starlite Components, Automotive Stampings, Fruition Venture, Mena Mani Industries, Suditi Industries, ACI Infocom, Usha Martin Edu, Inani Securities, Piccadily Sugar, Kuwer Industries, Prime Urban, Sanjivani Paranteral, Nagarjuna Agritech and T. Spiritual World.
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