Stocks under Rs 100 with a positive breakout on the charts
Indian capital market is seeing backwash effects of the damaging report by short-seller Hindenburg that raised several question marks about the Adani Group stocks. The benchmark indices have tanked for the second day running on Friday.
There are two concerns playing on the mind of investors: one, the impact on the Adani stable of stocks that have themselves cracked and, second, the repercussions on the banks that have lent to the heavily indebted group, thereby pulling down the banking index.
Meanwhile, investors looking at the charts often base their strategy on momentum plays. In this, one can have various parameters but one common strategy is to look at stocks which have recently crossed some milestone in the form of simple moving averages or SMAs.
There are essentially three signals that traders look for, stock prices when they cross their 30-day SMA, 50-day SMA and 200-day SMA. These note positive breakouts with a short term, medium term and long-term trend.
Even as the overall market is showing bearish sentiments, some of these stocks have shot up.
If we take a cut off of Rs 100 as a ceiling for a share price and pick stocks based on a positive breakout with a crossover from 200-day SMA, we get a list of hundreds of stocks that fit the criteria. Factoring out the penny stocks with price under Rs 30, we get 52 companies.
Starting from the top end of the price stack there are names like Eiko Lifesciences, City Pulse Multiplex, Indag Rubber, Transglobe Foods, Bliss GVS Pharma, SecMark Consultancy, Roni Households, Tanvi Foods, MRO-TEK Realty, Ushanti Colour Chem, Gautam Exim and Ganga Papers India.
Going further down in the stock price charts, there are names like Ashapuri Gold, Betex India, Canopy Finance, Deco-Mica, Lorenzini Apparels, ETT, Rama Vision, Khemani Distributors, Taylormade Renewable, SV Global Mill, SW Investments, ANI Integrated, York Exports and Standard Capital.
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