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Lupin, Motherson Sumi show positive momentum ahead of Budget, suggests MACD

MACD crossing above MACD baseline means a positive trend will emerge for the stock/index going ahead.

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MACD Indicator

Avdhut Bagkar Mumbai
Moving Average Convergence Divergence (MACD) is a trend following indicator calculated by subtracting two exponential moving averages. The 26-period exponential moving average (EMA) is subtracted from 12-period EMA and to make things simpler, a 9-day EMA is plotted on MACD to identify buy and sell triggers. This EMA is known as a signal line.
 
An “MACD baseline” also known as zero line is plotted. This is none other than the difference/ distance between MACD and signal line, which is formally known as Histogram. When MACD is above the signal line, histogram will be above the MACD baseline and vice