These stocks are showing strength against Nifty 50

Markets from the past five trading sessions have been trading in a narrow range with a negative bias. In this article, we have identified stocks that have shown strength against Nifty 50.

It’s now over eight months that Nifty 50 has been in a declining phase. Although it is believed that markets have bottomed out, there are no such strong signs visible yet.

It witnessed a death crossover in the month of May 2022 and ever since it has been trading below its 50-Day and 200-Day Exponential Moving Average (EMA). Even the spread between the index values and these moving averages has widened.

Moreover, strong resistance is placed at 16,550 to 16,650 levels which is almost 1,000 points away from present levels. On the downside, 15,450 would act as support in the near term, whereas 15,200 to 15,050 would act as strong support in medium term.

If we look at the Relative Strength Index (RSI), then it is presently trading at 45 above its 9-Day Moving Average (DMA) of 39.49. Therefore, in the near-term strength is still intact. However, from the medium-term perspective still there is weakness.

Having said that, we have identified a few stocks from Nifty 50 universe that have outperformed Nifty 50.