SKF, Torrent Pharma, Trent among new stocks with ‘Golden Cross’ mark

The Indian stock market has bounced back strongly as the first quarter corporate results started flowing last month, neutralising the impact of liquidity tightening and rate hikes initiated not just in the domestic market but also in the US.

The benchmark indices rose again on Monday, climbing 1%, and are now just 5% below their all-time peak touched in October last year.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick 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 carry the Golden Cross.

This list of stocks, which had a crossover date over the last one week, has as many as 34 names. These include well-known companies such as SKF India, Torrent Pharma, City Union Bank, Balkrishna Industries, AstraZeneca Pharma, Goodricke Group, Trent and Container Corporation.

Smaller stocks in the list include Veritas, PBA Infrastructure, Hindustan Foods, Perfectpac, Raj Television, Rico Auto Industries, Unichem Laboratories, ZF Steering, Autoline, Sanghvi Movers, Swaraj Engines, Ador Welding and Sunteck Realty.