Thomas Cook, Yes Bank, Praj among new stocks with ‘Death Cross’ mark
The Indian stock market has been trying to build a bottom after being hit by a hailstorm of liquidity tightening and rate hikes in the domestic market but also in the US.
The ongoing war in Europe, which has put the global crude oil price on the boil, has made matters worse as it has significant implications for local companies that depend on fuel to run their business.
The bloodbath in the mid- and small-caps has been much more brutal with several companies seeing their share price decline by 30% or more from their recent peaks.
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 stocks like Praj, India Glycols, Network 18 Media, Yes Bank, Symphony, Thomas Cook, Chambal Fertilisers, Trident, Allcargo, DCM Shriram, and Everest Kanto.
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