Which stocks are carrying ‘Golden Cross’ and ‘Death Cross’ marks?

The Indian stock markets are going through a bout of consolidation after a correction that shaved off nearly a tenth of their value from their peak a few weeks ago. While some stocks have settled at a lower level and many have retained their investment flavour, a few are sinking even further as the liquidity overflow recedes.

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 which of the two marks.

The ‘Golden Cross’ stocks list includes Indiabulls Housing Finance, Capital Trust, Shalimar Paints and Saint-Gobain Sekurit India Ltd, besides a whole host of micro-cap and penny stock firms.

Another way to look at these names is to see which of these companies have achieved the ‘crossover’ more recently as this could indicate they are still on the way up as against others that could have seen the crossover a few weeks back and now are in the reversal zone.

Here we get names like Oswal Greentech and Ballarpur Industries, which have seen the crossover this week itself.

On the other hand, the ‘Death Cross’ basket has stocks such as construction materials firm HIL, FMCG major Britannia, chemicals company Alkyl Amines and industrial machinery firm Stovec.

This list also includes Kirloskar Industries, Vindhya Telelinks, Poly Medicure, Accelya, Ruchi Soya, UPL, IndusInd Bank, Adani Ports, Garware Hi-Tech, Jindal Steel & Power, JSW Steel, Clariant, Motherson Sumi, V-Guard and state-run SAIL, among others.