The recent fall in the stock market has seen many stocks enter the Rs 100 club. Simply put, the 'Rs 100 club' includes those scrips that have slipped below Rs 100 levels. Counters like Dewan Housing Finance Corporation (DHFL), Jet Airways (India), IRB Infrastructure Developers, Reliance Capital, Reliance Infrastructure are some of the stocks that fit this category.
Here are strategies on how you can tackle some of these stocks.
Sun Pharma Advanced Research Company (SPARC):
The stock has breached significant support of Rs 140 recently and its continues to trade below the same which has eventually dented the positive sentiment. As recovery seems fragile, the lower levels are inevitable. The weekly chart clearly shows “Death Cross” of 50-day moving average (DMA) and 100-DMA with 200 DMA, a scenario that purely indicates more downside for the stock. CLICK HERE FOR DETAILED CHART VIEW
Tamil Nadu Newsprint & Papers (TNPL):
A stock trading at 52-week low means bearishness and deterioration in sentiment. A formation that resembles “Lower highs, lower lows” induces more weakness and if in case breakdown happens, then one should be ready for a bigger downfall. The short-term support stays in the range of Rs 150 – Rs 145, if broken on high volumes then further downside is expected. CLICK HERE FOR DETAILED CHART VIEW
Rallis India (RALLIES):
It is currently holding above the most relevant support of Rs 135. The medium-term trend has turned negative as major selling was witnessed above Rs 280 levels. Thereafter, it never gave a reversal that could show revival or bullishness and corrected over 40 per cent. That said, it is trading below 200-DMA from more than one year. Bearish sentiment has not only destroyed price, but also affected the average volumes traded. CLICK HERE FOR DETAILED CHART VIEW
Indoco Remedies (INDOCO):
The stock lost the positive momentum when it breached Rs 170 on a bigger time frame. It did try to revive by moving towards Rs 230 – Rs 240 levels; however, could not manage to hold the upside. A minor support is at Rs 130, where buying is expected to arise, but if it fails to hold the same then one can see another leg of downside. The technical indicator RSI (Relative Strength Index) is trading at 17 levels on daily chart, last seen in May, 2017. On the weekly chart, the RSI is finding difficult to cross zero line. CLICK HERE FOR DETAILED CHART VIEW
Himatsingka Seide (HIMATSEIDE):
After a Death cross in June last year, the scrip managed to climb above 200-DMA in April, 2019; however, it failed to sustain resulting in a new 52-week low of Rs 157.60. Anything below this low may open door for Rs 112 – Rs 105. The recent volume structure highlights volatility, which may rise if stock breaches significant supports. CLICK HERE FOR DETAILED CHART VIEW