MACD Shows That These Stocks Will Experience Major Dip
Over the past three days, it is being observed that there was a sharp drop in the Nifty50 that has pushed the index below the 10,250 mark, making traders wonder whether it is headed for sub-10,000 level. But technical charts are giving mixed signals across counters. At Monday’s close, momentum indicator moving average convergence divergence, or MACD, reflected weak bias on as many as 46 counters on NSE, signalling a major downturn in these stocks. The charts also showed some 19 stocks were poised for a rally.
Such counters have also been witnessing strong trading volumes of late, adding further credibility to the emerging trend. Out of stocks that looked weak were largely NBFCs, small banks and companies from the construction, infrastructure and real estate sectors. They include NCC, Indiabulls Real Estate, RBL Bank, HDFC, Bharat Financial, AU Small Financial, Ambuja Cements, MEP Infrastructure and Heidelberg Cement, among others. Sugar stocks Bajaj Hindustan and Dhampur Sugars, healthcare stocks Marksan Pharma and Dr Lal Pathlabs and consumer stocks Bata India, Kansai Nerolac and Manpasand Beverages too looked weak on the technical charts.