These Three Stocks Are Trading Below Ten Week Moving Average: Ncc, Tata Motors, Hindustan Aeronautic

MarketSmith India Stories 25 Mar 2021

Ncc 

Ncc has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 92. The stock is up 345.7% from a year ago as compared to 69.6% for the Nifty500.

The stock has had a monster run post its Breakout from a 11-week, 23% deep Consolidation Base.  The stock has gained 90% from the ideal buy point of INR 38 in just 20 weeks.

Ncc stock fell -13.86% this week, undercutting its 10-week moving average. Currently, the stock is trading -8.5% below the 10-week moving average. However, the volume for the week so far remained below its 10-week average.

The long term support line, 40-week moving average is still in uptrend. The stock is trading around 46.5% above the 40-week moving average.

The leading stocks often take support near its 10-week moving average. But if a stock closes below the line, that should be considered as an early sign of weakness. Closing below the line on a lower volume is okay, but staying there is not.

At this point, if you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can monitor the stock carefully for signs of further weakness.

Tata Motors Ltd. 

Tata Motors Ltd. has been a roaring outperformer as compared to the broader market. It has a top-notch Relative Strength Rating of 93. The stock is up 316.5% from a year ago as compared to 69.6% for the Nifty500.

The stock has had a monster run post its breakout from a 10-week, 21% deep Consolidation Base.  The stock has gained 86% from the ideal buy point of INR 155 in just 19 weeks.

Tata Motors Ltd. stock fell -6.55% this week, undercutting its 10-week moving average. Currently, the stock is trading -5.9% below the 10-week moving average. However, the volume for the week so far remained below its 10-week average.

The long term support line, 40-week moving average is still in uptrend. The stock is trading around 55.2% above the 40-week moving average.

The leading stocks often take support near its 10-week moving average. But if a stock closes below the line, that should be considered as an early sign of weakness. Closing below the line on a lower volume is okay, but staying there is not. At this point, you can monitor the stock carefully for signs of further weakness.

Hindustan Aeronautic 

Hindustan Aeronautic has been an outperforming stock as compared to the broader market. The stock is up 90.9% from a year ago as compared to 69.6% for the Nifty500.

The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

Hindustan Aeronautic stock fell -4.3% this week, undercutting its 10-week moving average. Currently, the stock is trading -3.2% below the 10-week moving average. However, the volume for the week so far remained below its 10-week average.

The long term support line, 40-week moving average is still in uptrend. The stock is trading around 9% above the 40-week moving average.

In a strong market, the 10-week moving average, can act as a support level for the stock. But, it can also act as a resistance level during a downtrend. At this point, if you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can monitor the stock carefully for signs of further weakness.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
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