Golden Cross formation on Nifty 50 index: Will its 6-year history hold?

The Nifty 50 index has formed a "Golden Cross" on its daily chart, with the 50-Day Moving Average crossing above the 200-Day Moving Average. This is a bullish indicator for the index and suggests a potential uptrend. Historically, the Nifty has experienced an average gain of 15% over the next year after a Golden Cross formation.

Title: Nifty 50 Index Forms "Golden Cross," Indicating Bullish Potential

The Nifty 50 index has formed a "Golden Cross" on its daily chart, with the 50-Day Moving Average (50-DMA) crossing above the 200-Day Moving Average (200-DMA). This technical indicator is considered bullish and suggests a potential uptrend for the index. Historically, the Nifty has experienced an average gain of 24.4% over the next year after a Golden Cross formation [3].

On June 5, 2025, the Nifty 50 index hit a new high, with the 50-DMA now quoting at 24,073 and the 200-DMA at 24,071. This "Golden Cross" formation is a significant event in the index's history, as it has occurred five times since 2019, with an average gain of 24.4% over the following year [3].

The formation of the Golden Cross comes amidst a backdrop of positive global cues. The Indian stock market is expected to open higher on Wednesday, tracking upbeat global cues and a modest premium on Gift Nifty [1]. Wall Street markets rallied overnight, led by strong buying in technology stocks, which could provide further support for the Indian markets [1].

While the formation of the Golden Cross is a positive sign, investors should remain cautious. The Indian markets ended lower on Tuesday due to valuation concerns and lack of resolution in global trade and geopolitical tensions [1]. Additionally, recent data from the US, such as the JOLTS report showing mixed signals in labor markets and a slump in US factory orders, may introduce some uncertainty [1].

In conclusion, the formation of the Golden Cross in the Nifty 50 index is a bullish indicator that suggests a potential uptrend. However, investors should closely monitor the broader market conditions and other technical indicators to make informed investment decisions.

References:
[1] https://liveindia.tv/business/indian-stock-market-today-key-overnight-cues-gift-nifty-wall-street-gains-us-jobs-data-crude-prices/
[2] https://www.ndtvprofit.com/markets/nifty-it-outperforms-nifty-50-following-positive-sentiments-from-nvidia-earning
[3] https://www.business-standard.com/markets/news/nifty-chart-shows-golden-cross-formation-will-its-6-year-history-hold-125060400180_1.html