Top stocks experiencing a golden crossover

The golden crossover is thought to represent a shift in trend. Continue reading to learn about the top Nifty 500 stocks that have achieved a golden crossover.

Markets are currently trending south, with lower peaks and lower bottoms indicating a bearish market tone. The market is currently trading below its 50-Day and 100-Day Moving Averages (DMA). However, it is taking support on its 200-DMA.  

We are yet to see a negative crossover or death crossover of these Exponential Moving Averages (EMA) to draw a judgement about a trend reversal. However, there are stocks in the Nifty 500 universe that have seen a golden crossover in the last one and a half months.  

When a short-term moving average crosses over a major long-term moving average, this is referred to as a golden crossover. This usually happens when the 50 DMA crosses the 200 DMA from below. Few investors utilize the EMA instead of the Simple Moving Average (SMA), and even fewer use the 100 DMA instead of the 200 DMA.   

The golden crossover indicates bullishness and a likely long-term trend reversal. However, one should not base their investment decisions on this; rather, it should be used as a screening criterion to identify stocks that may be on the verge of a trend reversal. When combined with price action, this can help you invest in stocks with a long-term outlook. The golden crossover and death crossover are two popularly used methods for determining when to enter and exit a stock.  

The top five Nifty 500 stocks experiencing golden crossover are shown below.