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Watch Out For These Stocks As They Are Showing Signs of Weakness.

August 12 2021 | Reading Time: 8 Minutes

Sterlite Technologies Stock

 

An outperforming stock as compared to the broader market. The stock is up 116.9% from a year ago as compared to 46.2% for the Nifty500.

 

Most recently, the stock broke out of a 14-week, 28% deep Ascending Base 15 weeks ago. The stock has gained a reasonable 19% from the ideal buy point of INR 238.

 

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.

 

Sterlite Technologies  stock fell -2.17% this week, undercutting its 10-week moving average. It closed 1.34% above the 10-week moving average. However, the volume for the week remained below its 10-week average.

 

The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 31.71% 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.

 

Grindwell Norton Stock

 

Grindwell Norton has been an outperforming stock as compared to the broader market. The stock is up 131.6% from a year ago as compared to 46.2% for the Nifty500.

 

Most recently, the stock broke out of a 7-week, 17% deep Consolidation Base 14 weeks ago.

The stock has gained a reasonable 23% from the ideal buy point of INR 981.

 

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.

 

Grindwell Norton stock fell -2.44% this week, undercutting its 10-week moving average. It closed -1.43% below the 10-week moving average. However, the volume for the week remained below its 10-week average.

 

The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 29.6% 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.

 

Jindal Saw Stock

 

Jindal Saw has been an outperforming stock as compared to the broader market. The stock is up 105% from a year ago as compared to 46.2% for the Nifty500.

 

The stock has had a good run in the last 14 weeks post its breakout from a 8-week, 20% deep Cup Without Handle Base. The stock has gained 49% from the ideal buy point of INR 88.

 

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.

 

Jindal Saw stock fell -4.97% this week, undercutting its 10-week moving average. It closed -5.78% above the 10-week moving average. However, the volume for the week remained below its 10-week average.

 

The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 34% 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.

 

ICICI Securities Stock

 

Most recently, the stock broke out of a 43-week, 34% deep Cup Without Handle Base 12 weeks ago. The stock has gained a reasonable 22% from the ideal buy point of INR 569.

 

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.

 

ICICI Securities stock fell -2.34% this week, undercutting its 10-week moving average. It closed -0.13% below the 10-week moving average. However, the volume for the week remained below its 10-week average.

 

The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 35.8% 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.

What do you think? Please email us any questions or comments.

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.For more information, see our Legal disclosures here.

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