Penny stocks with dragonfly doji pattern and upside potential
The Indian stock market has been trying to regain all of the lost momentum and has scaled back after seeing a bottom at about 5% below the peak level attained last month.
Investors who bank on technical analysis or patterns in the price and volume movements of a stock typically use candlestick charts or use it along with other parameters to predict price movements of stocks in the future.
One such parameter is the ‘dragonfly doji’, a Japanese candlestick pattern which hints at the possibility of a trend reversal. On the candlestick chart it has a ‘T’ shape due to a trading day that starts with a decline and then a reversal to close right near the opening price.
If we twine it with a bearish trend like the market has behaved in the recent past it could suggest some stocks that could see an uptick.
If we apply this to all the stocks, we get a set of 123 companies. Of these there are no large caps and just one mid-cap: Kajaria Ceramics. Rest all are small and microcap firms with many being penny stocks.
Filtering them further for penny stocks that are priced less than Rs 25 a share we have 53 companies.
These include names like MPS Infotecnics, Future Lifestyle, Ballarpur Industries, Shrenik, Jyoti, Goenka Diamond, Paras Petrofils, B C Power Controls, Dhanashree Elect, Mercator, LCC Infotech, Hindustan Flurocarbon, Prima Industries, National Steel, Shekhawati Poly Yarn, Gayatri Highways, Ironwood Education, Radha Madhav Corp, RR Financial and GTN Textiles.
Others in the pack include Taaza International, Yuvraaj Hygiene, Kachchh Minerals, Aishwarya Tech, Rishabh Digha, Kretto Syscon, SC Agrotech, Ramgopal Polytex, Constronics Infra, Creative Eye, Chothani Foods and Paos Industries, among others.
Start Investing in 5 mins*
Rs. 20 Flat Per Order | 0% Brokerage
Open Free Demat Account
By proceeding, you agree to the T&C.
Gold traded sideways after a 1% climb in the previous session, although gold headed for second straight weekly gains on bets that the U.S. Federal Reserve may pause rate hikes in its next week meeting. According to the Fed rate monitor tool, there was a 73.7% chance that the central bank will stand down from the rate hike next week. Market participants are keeping an eye on the next inflation reading due Tuesday.
- Jun 09, 2023
In the week gone by, our markets continued its upmove during the mid-week and Nifty rallied towards 18800 mark. But it fell just short of making a new record and witnessed some profit booking towards the end of the week to end below 18600 with marginal weekly gains.
- Jun 09, 2023
Fill in your details below: