HCL Tech, NBCC, Finolex among new stocks with ‘Golden Cross’

The Indian stock market has seen some profit booking after hitting a new peak early this month but remains clear of the previous high that was seen as a resistance point for the benchmark indices.

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.

This list of stocks, which had a crossover date over the last one week, has 48 names. These include companies such as Shree Cements, Sun Pharma Advanced, Gujarat Gas, JSW Ispat Special, NBCC, Hikal, HCL Technologies, Glenmark Pharma, Hindustan Zinc, IFB Industries and Indiabulls Housing Fin.

Among others, Munjal Showa, Orient Cement, Lincoln Pharma, Finolex Industries, Panasonic Energy, TIL, R Systems International, Prime Focus, Swan Energy, Triveni Engineering also are in a bullish spot.