BHEL, BPCL: 42 of 57 stocks in BSE PSU index set to rise, shows MACD

The PSU stocks have seen a decent surge in the last couple of sessions. The S&P BSE PSU index shows stability above the 50-day moving average (DMA) as per the daily chart. With the support staying strong at 4,600 levels, the index stocks have started showing strong positive bias.

The S&P BSE PSU index consists of 57 stocks. Out of these, 42 are exhibiting positive momentum with upward strength as per the Moving Average Convergence Divergence (MACD).  This indicator shows the bullish and bearish dimension on the positive crossover / negative crossover and the relevance of the zero line. Stocks that cross or stay above the zero line with a positive crossover are said to have an upward direction with strong positive momentum. As this is a trend following indicator, the upward direction of the moving averages highly denotes firm underneath strength.

Out of these 42 stocks, 28 stocks have not seen any negative crossover above the zero line and are trending upward with price witnessing buying at corrective moves. Stocks like Central Bank of India, Cochin Shipyard Ltd, India Tourism Development Corporation are trading well above the 100-DMA, whereas the Gujrat Gas Ltd, Hindustan Aeronautics Ltd, MOIL Ltd, and RCF have crossed 200-DMA decisively.