resr 5paisa Research Team 10th December 2022

Stocks priced under Rs 50 that could be ‘buy’ candidates on Williams %R chart

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The Indian stock market has managed to claw back some of the lost momentum after the sharp correction two months back that took the indices to around 15% below their peak.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is showing signals of past activity that is best left untouched.

We picked a metric called Williams %R, which is a momentum indicator that can signal bullish or bearish trends for a stock.

Developed by Larry Williams, Williams %R is the inverse of the Fast Stochastic Oscillator. Its reading varies between 0 and -100, with 0 to -20 indicating an overbought range and -80 to -100 being seen as an oversold zone.

We ran an exercise to see which small cap stocks with a share price under Rs 50, a haven for traders, currently are in the bullish zone as per Williams %R.

There are around 90 such small and micro-cap stocks that fit the bill.

Looking at this pack with a respectable market cap of over Rs 100 crore we have names like Sanghi Industries, Xtglobal Infotech, Vishal Fabrics, Nandan Denim, Sat Industries, Arshiya, Yaari Digital and Shrenik.

Those with a market cap between Rs 50-100 crore has names such as Parvati Sweetners, Syschem (India), Century Extrusions, SKIL Infrastructure, Ushdev International, OK Play India, Sulabh Engineers, Ashnoor Textile and Emerald Leasing Fin.

Lower down the pack of penny stocks, there are companies like Patel Integrated, Orchasp, Mercator, Aditya Consumer, ATV Projects, Acme Resources, Sri KPR Industries, Eastern Silk Ind, Sri Havisha Hospital, Prakash Woollen, Elixir Capital, Gilada Finance, Veejay Lakshmi, Super Crop Safe, Shree Krishna Paper, Orosil Smiths, Alacrity Securities, Silly Monks Ent, Adarsh Plant, Saianand Commercial, Marble City, Econo Trade, Kachchh Minerals, Destiny Logistics and Amraworld Agrico among others.

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