These stocks priced under Rs 20 show a bullish pattern by candlestick strength

Stock markets

by 5paisa Research Team Last Updated: Dec 13, 2022 - 11:11 am 17.7k Views
Listen icon

Investors who bank on technical analysis or patterns in the price and volume movements of a stock(s) typically use candlestick charts or use it along with other parameters to predict price movements of stocks in the future.

Candlestick charts, or Japanese candlestick charts, were devised by—or are attributed to—Japanese rice trader Munehisa Honma, who made loads of money in Osaka in the 18th century.

Of course, he wouldn’t have imagined that nearly 300 years later, the candlestick charts would become the staple of studying patterns in the stock and currency market.

In simple terms, the candlestick captures the opening and closing price along with highs and lows of a stock. Analysts study patterns of these candlesticks to pick stocks.

One of the strategies that are used by technical analysts is to look at stock with good aggregate candlestick strength. This, in turn, is the value one derives from the net of bullish over bearish candlestick indicators.

If the number is in the positive quadrant and has a higher value it indicates the bullish pattern and vice versa for the number being in the negative side.

If we apply this to the broader list of stocks, we get a set of 119 companies that have a good aggregate candlestick strength of 1 or more, showing bullish trends. Most of these stocks are from the small and micro-cap list.

If we filter out companies by focusing on stocks with stock price under Rs 20 each, we get around 80 companies.

In this set, some of the companies include Eurotex Industries, Lesha Industries, Indo-Global Ent, India Cements Cap, Steel Exchange India, Toyam Industries, Indowind Energy, Super Bakers, Enterprise International, New Light Apparels, Sita Enterprises, Shalimar Wires and Ansal Properties.

A few other stocks in the pack include RLF, Yuranus Infra, Mipco Seamless Rings, Sybly Industries, Mathew Easow Research, Jhaveri Credits, BAG Films & Media, Caspian Corporate, Super Tex Industries, Janus Corporation, Stellant Securities, Oscar Global, Prism Medico, Crane Infrastructure, Howard Hotels, GSB Finance and Beryl Securities.

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
Market Outlook for 16 April 2024

Our markets started the week on a negative note owing to the rising geopolitical tensions seen over the weekend. Nifty witnessed some pullback from the opening hour low of 22260, but it witnessed selling pressure at higher levels and ended the day around 22270 with a loss of over a percent.

How are Gifts Taxed?

Exploring the complexities of gift taxes reveals a complicated network of restrictions and exclusions. In this article, we will address the fundamental subject of ‘’how gifts are taxed’’. Understanding the subtleties of present tax legislation is essential for everybody trying to traverse the panorama of giving without incurring unexpected monetary liabilities. We want to simplify the process by delving into the complexities of exclusions and taxable gift levels.

How to Create a Personal Budget in 6 Steps?

Budgeting is the most essential step when it comes to managing your income efficiently. While budgeting has a lot of advantages, a key benefit includes tracking down your expenses and controlling them according to your choice. This helps to reduce unnecessary expenses and also helps you save your hard-earned money for better purposes. Although, a lot of people out there don’t know how to make a monthly budget.