NOCIL, GVK Power, Nilkamal among stocks with a ‘Death Cross’

The Indian stock market, which broke out with top indices touching a new all-time high this week, is taking a breather on Friday. While many pundits feel a correction is imminent, others believe a short-term correction would only provide the base for another bull run.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the picking or is best left untouched.

One of the technical marks to pick or move away from a stock is to see which ones have a ‘golden cross’ and which others have the ‘death cross’ etched on their back. Both use the concept of moving averages to show trend lines on what the charts foretell about the possible future trajectory of a stock.

The Golden Cross strategy picks stocks whose simple moving average, or SMA, for the last 50 days has crossed above their SMA for 200 days. This is seen as a critical technical indicator for stocks that could be in the bullish zone.

On the flip side, the Death Cross strategy picks stocks whose 50-day SMA has sunk below their 200-day SMA. This is seen as a critical technical indicator for stocks that could be in the bearish zone.

We ran an exercise to see which stocks have got the Death Cross on their back over the last one week as the markets climbed en-masse.

This list has around 39 names. These include: NOCIL, Asian Hotels (East), Balaji Amines, Nilkamal, Wheels India, Orient Bell, Genesys International, Shreyas Shipping, Plastiblends, Avanti Feeds, GVK Power and Panasonic Energy.

This packs also includes: Riddhi Siddhi Gluco, M P Agro Industries, NRB Industrial, Infomedia Press, Asahi Songwon Colors, Rushil Décor, Alkyl Amines and Swan Energy.