Watch Out For These Stocks As They Are Showing Signs of Weakness
An outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 83. The stock is up 194.2% from a year ago as compared to 46.2% for the Nifty500.
The stock has had a monster run post its breakout from a 10-week, 18% deep Consolidation Base. The stock has gained 171% from the ideal buy point of INR 159 in just 24 weeks.
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.
Dalmia Bharat Sugar stock fell -4.83% this week, undercutting its 10-week moving average. It closed -3.19% 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 71.08% 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.
Max Financial Service has been an outperforming stock as compared to the broader market. The stock is up 96.6% from a year ago as compared to 46.2% for the Nifty500.
Most recently, the stock broke out of a 12-week, 13% deep Flat Base 11 weeks ago. However, the stock failed to make meaningful progress.
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.
Max Financial Service stock fell -1.36% this week, undercutting its 10-week moving average. It closed -1.05% 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 19.8% 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.
Kec International Ltd has been a laggard stock for the last one year. It has had a 27.8% move as compared to 46.2% for the Nifty500.
On the earnings front, Kec International Ltd has an EPS Rank of 60, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 7% and 9%, respectively over the past three years. Its 3-years earnings stability is 4, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 10%, respectively. The 5-years earnings stability is 16. The return on equity for the last reported year is 18%.
Kec International Ltd stock fell -5.0% this week, undercutting its 40-week moving average. It closed -1.0% below the 40-week moving average. However, the volume for the week remained below its 10-week average.
When a stock closes below its 40-week moving average, it may take months, even years to stage a recovery. So, a closing below the line should be considered as a weakness in a stock, at least for the intermediate term. If it is a long term leader, we manage it differently. At this point, Kec International Ltd does not meet our long term leader’s trend criteria. If you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you are sitting on a profit, this is a time to take at least partial profit.
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