Nifty Auto sees Golden Cross, 5 stocks with similar patterns; how to trade?

MRF, TVS Motor, Tata Motors, Maruti, Mahindra & Mahindra and Ashok Leyland from the Nifty Auto index have witnessed a 'Golden Crossover' in recent months; here's a detailed outlook.

The Nifty Auto index has witnessed the formation of 'Golden Cross' on the daily chart after a gap of more than six months. Technically, 'Golden Cross' is considered as a bullish signal, with further upside potential.  The term 'Golden Cross' also commonly referred as 'Golden Crossover' means that the 50-Day Moving Average (50-DMA), has now crossed the 200-DMA from below. This suggests that the support levels for the index are moving higher.  Apart from the Nifty Auto index, there are 5 auto stocks which witnessed a similar development on the daily charts in recent months. Mahindra