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These 3 Negative Stocks To Stay Away From

By Kiran ShroffStock MarketsOct 10, 2018 01:56
in.investing.com/analysis/3-negative-stocks-to-stay-away-from-200205406
These 3 Negative Stocks To Stay Away From
By Kiran Shroff   |  Oct 10, 2018 01:56
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Investtech has created algorithms that score any stock based on certain criteria, that are a trend, support, and resistance, volume, momentum and price formations. So I went through the stock selection option and identified three stocks that are overall scored negative by these smart algorithms on all time frames. I made sure that I choose ones that are liquid enough to trade.

Crompton Greaves (NS:CGPO) Consumer Electricals Limited, Close: 202.35

CROMPTON_medium-term
CROMPTON_medium-term

Crompton Greaves Consumer Electricals Limited is one of the top negative scorers on our list of negative stocks with -88 points to its credit. The stock price has broken down from an approximately horizontal trend channeling the medium-term. It also broke the neckline from a head-and-shoulders formation on the longer-term chart at 220 rupees after investors have sold at ever lower prices. A negative signal has been triggered and further decline for the stock is indicated. The price target from the formation comes to around 148-150 rupees. In the case of a reaction, there is a resistance of 220 now.
The fall has been supported by high volume, hence giving a negative volume balance, and the short-term momentum is weak too. These turn out to be the supportive indicators for the price fall.

Investtech's outlook: Negative

Tata Motors (NS:TAMO) Limited, Close: 184.35

TATAMOTORS_medium-term
TATAMOTORS_medium-term

Tata Motors Limited scores -80 points as per Investtech's algorithms. The stock fell over 13 percent on Tuesday itself on significantly high volume due to consistently weak numbers from its luxury car brand Jaguar Land Rover. It closed at its multi-year low.

Further, the stock has broken through the falling trend channel. As per Invettech's research done on Nordic stocks for a similar case, the stock is suggested to underperform the underlying index by a significant margin.

Negative volume balance and negative momentum, with RSI below 30, has been an ardent supporter in case of price fall in Tata Motors. It shows that sellers have been aggressive selling the stock at steadily lower prices to be out of the stock.

Since there is no visible support on the medium-term chart, the stock can further before it manages to find a ground for itself. There is resistance around 250 rupees which is way higher than its closing price at 184.35.

Investtech's outlook: Negative

Balkrishna Industries (NS:BLKI), Close: 982.10

BALKRISIND_medium-term
BALKRISIND_medium-term

Balkrishna Industries has a negative score of -55. Balkrishna Industries Limited has broken down through the rising trend channel in the medium-term. Last week the stock gave a sell signal from a rectangle formation with a break down through the support level at 1023 and later through 1000 rupees. Further fall to 777 or lower is signaled. There are supports levels around 860 and 730 rupees.

There is resistance around 1020-1140 rupees on the short-term .

Investtech's outlook: Negative

Original Post

Written by,
Kiran Shroff, CMT
Technical Analyst, www.investtech.com

Disclaimer:
All analyses used herin are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.

These 3 Negative Stocks To Stay Away From
 

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These 3 Negative Stocks To Stay Away From

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Bagavathi appan
Bagavathi appan Oct 12, 2018 12:49
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Thanks for your hard work......
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Vijay Keer
Vijay Keer Oct 10, 2018 14:32
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Except crompton the other stocks will move up. The article was written probably withe verdict first then the whole web of yarn has followed. More research based on the charts is needed
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Mustafizur Mazumder
Mustafizur Mazumder Oct 10, 2018 14:30
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Guys start accumulating all the three...As per Graham all mentioned stock shall boom...
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muthu kumar
muthu kumar Oct 10, 2018 12:49
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thank you
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rupinder singh Sohal
rupinder singh Sohal Oct 10, 2018 12:31
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Thanks for the update
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Sudha Gandham
Sudha Gandham Oct 10, 2018 12:20
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Tata motors will increase
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Hitesh Saini
Hitesh Saini Oct 10, 2018 12:09
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Yes right
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Mahesh kumar reddy
Mahesh kumar reddy Oct 10, 2018 12:08
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Nice article.. so, will the tata motors still go down or it will increase from here on..
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Kiran Shroff
Kiran Shroff Oct 10, 2018 12:08
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I suggest to follow the price and trend. it is the best guide and a trader's best friend. And maintain stoploss depending on your time frame.. Good luck!
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