Golden Cross

Indian stock markets are set to enter next BULL phase. Reason is NSE nifty has formed a golden cross today 13th march 2012. A golden cross indicates a long term bull phase. when 50 day SMA moves above 200 day SMA, the phenomena is called golden cross. It doesn't mean market will move up in a straight line but the long term outlook would be bullish. We can expect our markets to once again cross 6000 levels in this phase.


  1. Golden cross to be effective has to have 50day SMA crossing 200day SMA at a steep angle. This is not so at present. It crossed in March 2011 at a shallow angle which resulted in the rally fizzling out in April 2011 at around 5900. Therefore, current weak golden cross will be tested in next 2-3 months and only if 50day SMA manages to stay above 200day SMA on weekly closing charts can a Bull phase be confirmed for next 1-2 years.

    1. in March 2011 the formation is Death cross, its not golden cross. death cross forms when 50 dma crosses 200 dma from above.