Stock Begins Downtrend with a 2% Cut; Makes LL & LH Formation!

  • Stock Market Analysis
Aayush Khanna - Investing.com

Opposite to the previous session, the broader markets are witnessing some selling pressure. Many sectoral indices are trading in the red zone, including the Nifty FMCG index which is down 0.89% to 51,864, by 12:07 PM IST.

One counter from this space that has just begun its downtrend and should be kept on the watchlist is Marico Limited (NS: MRCO ). It is a well-known FMCG company with a market capitalization of INR 75,439 crore and owns popular brands such as Parachute, Livon, Saffola, etc.

Image Description: Daily chart of Marico with volume bars at the bottom

Image Source: Investing.com

One of the easiest ways to determine the downtrend of the security is to watch out for a lower low and lower high (LL & LH) formation on the chart. As per the Dow theory, this is the classical representation of a falling market.

The share price of Marico took a hit of 2.3% to INR 570 (low of INR 568.2), as of writing, and fell below the previous trough of INR 568.6, marked on 21 September 2023, which marks the LL & LH formation. As this trend structure starts today, the stock can be deemed to be in a downtrend from today onwards, at least till the immediate peak is not breached, which is INR 586 as of now.

The intensity of today’s session pressure can be gauged by the fact that the stock wiped out the gains of the last 3 sessions. It might take some time for the counter to extend its fall as it is a large-cap (which generally has lesser volatility), the next support at around INR 552 would probably be the next stop for Marico shares.

Thank you to all who attended my webinar on 27 September. Remember, the massive discount offer of 65% on InvestingPro+ via the coupon code PROW478 is only valid till 10th October 2023. For any assistance reach me out at aayush.k@investing.com or on my X (formerly, Twitter) handle - aayushxkhanna

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search
  • ankit tripathi @ankit tripathi
    selling pressure more create below BN 44150
    Like 0
  • Girish Nimbakkanavar @Girish Nimbakkanavar
    tell me sir tomorrow... nifty.. bye or cell
    Like 0
    • Hyder Ali @Hyder Ali
      sell
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
      • Avoid profanity, slander or personal attacks directed at an author or another user.
      • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
      • Only English comments will be allowed.

      Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

      Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
      Please try another search
  • AVISHEK BISWAS @AVISHEK BISWAS
    Couldn't able to attend properly yesterday's webinar...Pl provide the new promo code
    Like 0
    • Aayush Khanna @Aayush Khanna
      Hi Abhishek, the promo code for Investing Pro+ is PROW478
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
      • Avoid profanity, slander or personal attacks directed at an author or another user.
      • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
      • Only English comments will be allowed.

      Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

      Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100
      Please try another search
  • @
    please suggest INTRADAY only
    Like 0
  • NIRAV JARIWALA @NIRAV JARIWALA
    BUY 45000 PUT BUY 620  1 LOT BUY HAI STOP LOSS 314 OR TARGET  800 TODAY EXPIRY
    Like 0
  • Sk Arif @Sk Arif
    sk Arif
    Like 0

Related Articles