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.
|DEWAN HOUSING FIN CORP LT||150.25||0.03|
|AJANTA PHARMA LIMITED||1035.2||2.67|
|NESTLE INDIA LIMITED||10,960||32|
|HCL TECHNOLOGIES LTD||1087.45||7.33|