2 Breakdown Shares that Scared Investors on Friday!

  • Stock Market Analysis
Aayush Khanna/Investing.com - Investing.com

The selling pressure continued on the last day of the week as the broader markets are still overbought amid a stupendous rally that started from April this year. The only two sectors that were able to hold their ground were Nifty Metal and Nifty Private Bank indices.

While there were a lot of accidents today, here are two stocks that delivered a fresh breakdown in today’s session as their selling outstripped the demand by a wide margin.

Navin Fluorine International Limited

Navin Fluorine International Ltd (NS: NAFL ) is a midcap specialty chemicals company with a market capitalization of INR 22,710 crores and trades at an expensive P/E ratio of 60.53, compared to the sector’s average of 20.21. The stock took a hit of 2.67% to INR 4,458.8 and closed below the support of 4,520.

Daily chart of Navin Fluorine International with volume bars at the bottom

Image Description: Daily chart of Navin Fluorine International with volume bars at the bottom

Image Source: Investing.com

This was an important demand zone that got penetrated today which is now projecting a bearish view on the stock. As the stock has taken a noticeable hit in the last two trading sessions, a retracement on the upside could materialize, but that should be deemed as a selling opportunity due to a lower low and lower high structure of the price chart. The fall could take a breather around the next support level of INR 4,300.

LIC Housing Finance Limited

LIC Housing Finance Ltd. (NS: LICH ) is a housing finance company with a market capitalization of INR 20,462 crores. The stock witnessed a big crack in today’s session as it fell 2.15% to INR 364, slicing through the support of INR 370. After surpassing this level, the stock further slid to the next support level of INR 363 and closed exactly there.

Daily chart of LIC Housing Finance with volume bars at the bottom

Image Description: Daily chart of LIC Housing Finance with volume bars at the bottom

Image Source: Investing.com

Traders can witness some demand kicking in at these levels but as the chart structure is weak, no long opportunities should be looked for either till the stock crosses INR 380 on a closing basis or further falls to the next support of INR 340. If the broader markets continue to see selling pressure, the likelihood of the latter case will be higher.

Read More: 2 ‘Highest’ Dividend-Paying Utility Stocks!

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  • Dipen Shah @Dipen Shah
    I want small digit number stock to invest pls share me stock name
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    • Rikhabchand Dugad @Rikhabchand Dugad
      Lemon tree Hotel
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      • Comment Guidelines

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  • KRISHNA NAIK @KRISHNA NAIK
    very nice thank you
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    • Aayush Khanna @Aayush Khanna
      You're welcome, Krishna.
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      • Comment Guidelines

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    how to like comment Sir
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