Stocks that trigger sell-offs
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Aptech:
The stock is currently trading at Rs 79. Its 52-week high/low stand at Rs 112.70 and 63.35 was made on 11th June, 2014 and 23rd October, 2013. On daily chart, the stock is trading below 200-days simple moving average. On weekly chart, it has breached its important support as defined by upward rising trend line along with rise in volume. Considering above factors, it looks like stock may continue its downward journey.
Bombay Dyeing & Manufacturing:
The stock is currently trading at Rs 66.20. Its 52-week high/low stand at Rs 87.90 and 48.50 was made on 09th June, 2014 and 03rd March, 2014. It is in medium-term downtrend. On the weekly chart, the stock has recently seen breakdown of triangle pattern. If sustained below the level of Rs 62.50 on weekly basis, it’s likely to touch the level of Rs 56 in medium-term.
Canara Bank:
The stock is currently trading at Rs 386.40. Its 52-week high/low stand at Rs 498 and 209 was made on 09th June, 2014 and 14th February, 2014. On the weekly chart it is facing resistance around downward sloping trend line and has formed a reversal candlestick pattern. The stock is hovering around important support of 38.2% Fibonacci retracement and once it pierces this important support it’s likely to head towards the level of Rs 345.
DLF:
The stock is currently trading at Rs 120. Its 52-week high/low stand at Rs 242.95 and 100.10 was made on 09th June, 2014 and 16th October, 2014. On the daily chart, the stock breached its important support as defined. On 7th October, 2014, the stock made several attempts to close the rising trend line but failed to sustain and registered further decline. The stock has been trading below its 200 simple moving average for a long period of time. Considering the above factors, it’s likely that stock may extend its downward movement.
Era Infra Engineering:
The stock is currently trading at Rs 11.85. Its 52-week high/low stand at Rs 51.15 and 11.30 was made on 23rd October, 2013 and 22rd October, 2014. Stock on daily chart is trading below its 200-day simple moving average. On weekly chart it has formed a bearish grip named as head and shoulder pattern and it has breached its neckline support. It’s likely that the stock may see lower levels.
GVK Power and Infrastructure:
The stock is currently trading at Rs 10. It’s 52-week high/low stand at Rs 20.90/ Rs 7.05 was made on 26th May, 2014 and 31st October, 2014. On the weekly chart it has formed multiple top levels of Rs 20.4-20.9. Multiple top formations are a reversal pattern composed of multiple failed attempts at making new highs in the same area, followed by subsequent downside break of support. The stock had also managed to breach its 61.8% Fibonacci retracement support level of August, 2014 to May, 2014 up-move. The stock might witness a mild pullback before registering further decline.
HCL Infosystems:
The stock is currently trading at Rs 70.30. Its 52-week high/low stand at Rs 94.50 and 18.90 was made on 22rd September, 2014 and 18th December, 2013. Stock on weekly chart has formed Three Black Crows which is a bearish reversal pattern that consists of three bearish candlesticks that are ominous and dark in color. The Three Black Crows usually indicate a weakness in an established uptrend. Considering the above it’s likely to drift lower.
Mcleod Russel:
The stock is currently trading at Rs 248. Its 52-week high/low stand at Rs 330.00 and 241.25 was made on 31st December, 2013 and 16th October, 2014. On weekly chart, the stock has seen a breakdown of triangle pattern along with rise in volume. This is bearish for the stock. On daily chart, it has been trading below its long-term moving average i.e 200-day simple moving average for a long time and has breached its horizontal trend line support as well. Considering above technical factors, the stock is likely to decline further.
NMDC:
The stock is currently trading at Rs 162. Its 52-week high/low stand at Rs 196 and 123.10 was made on 06th June, 2014 and 27th November, 2013. On the weekly chart it formed multiple top pattern level of Rs 196-206 and made several attempts to pierce this multiple resistance zone but every time it has failed to do so and registered a lower top. Currently, it is trading near to its support of 38.2% Fibonacci retracement. Once it breaches this support zone, it will trigger fresh sell off and this will take the stock lower.
Sun TV Network:
The stock is currently trading at Rs 310.70. It’s 52-week high/low stand at Rs 477/Rs 300 was made on 08th July, 2014 and 14th October, 2014. The stock on weekly chart had breached its important support as defined by rising trend line along with rise in volumes. It posted a lower, top lower bottom pattern. It had recently breached its 61.8% Fibonacci retracement level of June, 2013 to August, 2013 up-move. Considering the above technical factors, the stock is likely to decline further.