Watch Out For These Stocks As They Are Showing Signs of Weakness
Stock 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 over 91% in the last 13 weeks. It is up 413% from a year ago as compared to 48.2% for the Nifty500.
The stock has had a monster run in just 13 weeks post its breakout from a 8-week, 22% deep Cup With Handle Base. The stock has gained 67% from the ideal buy point of INR 724.
The price rise so far is well supported by institutional buying. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
This week, the stock fell -11.66% on a 66% lower volume than the 10-week average. It is not unusual to see a leading stock fall or take a pause in its run. But if a stock is down on heavy volume, the selling is not just a normal reaction. That usually indicates that the run might be coming to an end.
The short term support line, the 10-week moving average, is still in uptrend. The current price is extended 78.43% from the40-week moving average, respectively.
Taking everything into consideration, the stock looks a bit extended for the short term. While shares could certainly keep running higher, this is a good time to be taking at least partial profits. If you are sitting on a big enough profit, you can wait for the stock to breach the 10-week line.
Isgec Heavy Eng has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of76. The stock is up 190.7% from a year ago as compared to 48.2% for the Nifty500.
Most recently, the stock broke out of a 14-week, 29% deep Ascending Base 7 weeks ago. However, the stock failed to make meaningful progress.
Isgec Heavy Eng stock fell -7...% this week, undercutting its 10-week moving average. It closed -9.53% 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 42.6% 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.
Cosmo Films has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 87. The stock is up over 93.8% in last 13 weeks. It is up 213.3% from a year ago as compared to 48.2% for the Nifty500.
The stock has had a monster run in just 13 weeks post its breakout from a 9-week, 28% deep Ascending Base. The stock has gained 67% from the ideal buy point of INR 777.
The price rise so far is well supported by institutional buying. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
This week, the stock fell -5.66% on a 60% lower volume than the 10-week average. It is not unusual to see a leading stock fall or take a pause in its run. But if a stock is down on heavy volume, the selling is not just a normal reaction. That usually indicates that the run might be coming to an end.
The short term support line, the 10-week moving average, is still in uptrend. The current price is extended 14.22% and 92.28% from the 10-week and 40-week moving average, respectively.
Taking everything into consideration, the stock looks a bit extended for the short term. While shares could certainly keep running higher, this is a good time to be taking at least partial profits. If you are sitting on a big enough profit, you can wait for the stock to breach the 10-week line.
The New India Assur has been a laggard stock for the last one year. It has had a 26.9% move as compared to 48.2% for the Nifty500.
On the earnings front, The New India Assur has an EPS Rank of 40, which fails to impress a growth stock investor. The sales for the stock have grown by 8% over the past three years; however the earnings growth remained muted at -4%. Its 3-years earnings stability is 88, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 1% and 12%, respectively. The 5-years earnings stability is 68. The return on equity for the last reported year is 5%.
The New India Assur stock fell -7.19% this week, undercutting its 40-week moving average. It closed -8.30% 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, The New India Assur 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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