Stocks priced under Rs 25 with dragonfly doji pattern and upside potential

stocks

by 5paisa Research Team Last Updated: Dec 13, 2022 - 11:03 am 11.2k Views
Listen icon

The Indian stock market has been trying to regain all of the lost momentum and has scaled back after seeing a bottom at about 15% below the peak level attained a few times over the last twelve months. The pre-Diwali rally saw the top indices coming within a touching distance of the all-time highs.

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 140 companies. Of these there are no large caps and just four mid-caps: Apollo TriCoat, Elgi Equipments, Caplin Point and FDC. 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 and have a market value less than Rs 100 crore we have around 68 companies.

These include names like Pasupati Spinning, Asian Petroproducts, Shri Krishna Devcon, Omkar Pharmachem, Innovassynth, Acme Resources, Rishi Laser, Sita Enterprises, Indo Euro Indchem, JMJ Fintech, LWS Knitwear, Sylph Technologies, ACCEL, CHL, Global Capital, Banas Finance, Panjon, Classic Leasing, Shalimar Wires, Hypersoft Tech, Mehta Integrated Fin and Neelkanth Rock-Miner.

Others in the pack include TGB Banquets, Kisan Mouldings, Patspin India, H S India, Beryl Securities, India Infraspace, Goenka Business, Riga Sugar Company, Econo Trade, Lypsa Gems, Ramgopal Polytex, Spectra Industries, Ekam Leasing & Fin, Gopal Iron & Steels, Fraser & Company and Anjani Finance, among others.

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 01 April 2024

Swing Trading Stocks for the Week

Weekly Market Outlook for 1st April to 5th April

The week gone by was a truncated week of three trading sessions, but it was not short of any action as the index witnessed a smart recovery in three days. Nifty almost tested the previous all-time high above 22500 on the expiry day and ended just above 22300 with weekly gains of a percent.

Stock in Action – Bajaj Finance

Bajaj Finance Movement of Day