Check out the stocks showing bullish signs with a ‘bald head’

by 5paisa Research Team Last Updated: Dec 13, 2022 - 12:06 am 23.3k Views

The Indian stock market has been trying to build a bottom after sinking nearly 15% from the peak but fell again on Wednesday, before opening slightly higher on Thursday.

On the one hand, investors are worried about rising interest rates in India and the US. On the other, high crude oil prices due to the Russia-Ukraine war are increasing cost pressures on companies.

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.

One such parameter is ‘white marubozu’, which means white bald head in Japanese. This is a one-day bullish pattern with a tall white candle with no shadows. The pattern shows that buyers controlled the trading day from open to close, and is seen as a bullish pattern. It signals a bullish pattern overall.

If we use this parameter and pick stocks from Nifty 500, we get nine companies. These are IDFC, Alok Industries, KPIT Technologies, Grindwell Norton, Petronet LNG, Indian Hotels, Astral, Jindal Steel & Power and Bharti Airtel.

We also looked beyond the Nifty 500 to check stocks with a market cap of Rs 500 crore and above that meet this parameter.

This list includes companies such as Apollo TriCoat Tubes, GRM Overseas, Shaily Engineering, Shriram Pistons, Veranda Learning, Sportking India, Nahar Spinning Mills, Lloyds Steels Industries, Foseco India, Nahar Poly Films, Ultramarine & Pigments, Entertainment Networks, Automotive Stampings, Timex Group India, Orient Green Power, Rajnish Wellness and ASM Technologies.

Finally, we also checked lower down the stack in the set of companies with a market cap of between Rs 100 crore and Rs 500 crore. There are three dozen names in this list.

These stocks include Hubtown, Genus Paper & Boards, Veritas (India), Mafatlal Industries, IndiaNivesh, Bombay Oxygen, SPML Infra, Vadilal Enterprises and Visa Steel.

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