Zee Entertainment, Zydus, Apollo Hospitals among new stocks with ‘Golden Cross’

The Indian stock market is dancing in tandem with the global markets with both the benchmark indices shooting up as part of a pre-Diwali rally. 

The 30-stock Sensex was up nearly 1.8% and the 50-stock Nifty was up 1.7% in the morning trading session on Friday.

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 around 76 names. These include companies such as Zee Entertainment, Redington, Jubilant Industries, Vakrangee, Zydus Lifesciences, Zydus Wellness, Nilkamal, IDBI Bank, Apollo Hospitals, DCM Shriram, Bank of Maharashtra, Dish TV, La Opala, Tata Communications and JK Cement.

Among others, Chembond Chemicals, Country Club, Hatsun Agro, Avanti Feeds, Milkfood, Neuland Laboratories, National Peroxide, Royale Manor Hotels, Surya Roshni, Binny Mills, Majestic Auto, Mangalam Cement, FDC, Hindustan Copper and JSW Holdings also are in a bullish spot.