DHFL, Infosys among 5 Nifty F&O stocks that are set to rise, shows MACD

Technical indicator MACD (moving average convergence divergence) foresees the trend of stocks, indicating trading signals for short and medium term. Furthermore, the crossover helps to gauge the price reversal, suggesting a change in sentiments. If the MACD trades above zero line, it indicates upside and if it slips below the zero line, it means downside.

MACD is a trend suggesting indicator based on two moving averages. The 26-day Exponential moving average is subtracted from 12-day Exponential moving average. A 9-day moving average is plotted to act as a signal line which defines convergence and divergence. As the moving averages get closer, a convergence occurs inevitably depicting a change in a trend. Divergence said to occur when averages trade at a distant range. 
 

MACD, when correlated with other indicators like volumes and candlestick patterns has evolved as a low-risk indicator. As it gets closer to zero line, stocks develop higher volume trades with candlestick patterns indicating the high interest of traders.  

DHFL has closed above 50-DMA (day moving average) and is heading towards Rs 184 with immediate support at Rs 125. 

Ajanta Pharma faces resistance around Rs 1,070 – Rs 1,080 range, its 100-DMA, and 200-DMA, respectively. A major move is expected only above Rs 1,080, this may lead to Rs 1,150 and Rs 1,180. Support comes in at Rs 1,000 and Rs 975.

Infosys is trading sideways, a consolidation that holds Rs 705 as a strong support base. Its higher side resistance stands in the range of Rs 760 – 775 levels. 

HCL Tech is in an uptrend; however, it faces selling pressure at current levels. A move above Rs 1,110 will lead to a bigger breakout towards Rs 1,170 and Rs 1,210 level. Support for the stock is seen at Rs 1,010 level. 

Nestle India has an Inverse head and shoulder breakout with a rally heading towards Rs 11,600 and 11,900, as per daily chart. The immediate support comes in at Rs 10,400 level.

Stock Name	CMP	MACD
DEWAN HOUSING FIN CORP LT	150.25	0.03
AJANTA PHARMA LIMITED	1035.2	2.67
INFOSYS LIMITED	743.85	1.5
NESTLE INDIA LIMITED	10,960	32
HCL TECHNOLOGIES LTD	1087.45	7.33