Top Nifty 500 stocks with golden crossover

Want to check long-term trend action? Nothing better than looking for a Golden Crossover. In this article, we have listed the top Nifty 500 stocks with golden crossover.

In the morning trade, major equity benchmark indices jumped off the early lows as the Nifty 50 traded above the 16,550 level. All the sectoral indices on the National Stock Exchange (NSE) were trading in the green, apart from the Nifty Consumer Durables index. The improved sentiments of Foreign Institutional Investors (FIIs) helped Indian markets to take a breather. Having said that, they are still net sellers on monthly basis.

At the time of writing, Nifty 50 index was trading at 16,538.10, up 17.25 points (0.11%). Speaking about broader market indices, they outperformed frontline indices with Nifty Mid-Cap index and Nifty Small-Cap index up by 0.89% and 0.4%.

The golden crossover is witnessed when a short-term moving average crosses above a major long-term moving average. This usually occurs when a 50-Day Moving Average (DMA) crosses 200 DMA from below. 

Few investors use Exponential Moving Average (EMA) instead of Simple Moving Average (SMA) and few of them also use 100 DMA instead of 200 DMA. Golden crossover is considered to be a metric suggesting a probable long-term trend reversal.

Having said that, one should not base their investment decisions on this, rather it should be used as a parameter to screen stocks that might be heading towards a trend reversal.

If you use this along with price action, it would help you invest in stocks with a long-term bias. Golden crossover and death crossover are considered to be one of the ways to decide an entry and exit in a stock.