Beside Adani Green, Adani Transmission; 14 other stocks hit new 52-week low

Over half of the stocks in Nifty 500 index trades below the 200-day moving average (DMA), indicating a weaker breadth ahead of the Union Budget 2023. Altogether, 278 stocks failed to enter on bullish radar, suggesting that the trend to tilt in favour of bears if the Union Budget fails to boost domestic sentiment. 

Investors and traders regard the 200-DMA as the most relevant indicator for determining the overall trend. A stock or an index trading above its 200-DMA is said to possess bullish underlying bias, and vice versa. All stocks trading over their respective 200-DMA levels signify a positive sentiment. 

To add to this scenario, 25 stocks from the lists continue to hit fresh 52-week lows and experienced an aggravated sell-off when market volatility started to rise. 

Shares of Aurobindo Pharma, Indigo Paints, Adani Transmission, Adani Green Energy, Laurus Labs and Pfizer are some of the well-known stocks flashing negative signals after reaching fresh 52-week lows. 

Aurobindo Pharma, Indigo Paints, Pfizer, and Zydus Wellness are among stocks that witnessed continued sell-off since 2021 include. Every upside in these stocks in CY2022 was met with aggressive selling bets, leading stocks to lose more grounds. 

A clear vertical fall can be sighted in Adani Green Energy, Adani Transmission, Laurus Labs, Shilpa Medicare and Pfizer. Typically, such moves result in a trend which on a gradual basis sees elevated negative bias. 

Shares of Brightcom Group, Century Plyboards (India), Greenpanel Industries and Quess Corp have formed a bearish pattern of “Lower Low, Lower High” reflecting weakness until stocks resolutely overcome previous lower highs.

Whenever a stock hits a new 52-week low, further fall from a medium-term scale appears realistic, with price endorsing further correction of 10 per cent to 12 per cent.  In total, 11 of 16 stocks hitting fresh lows are exposing similar signals. 

On a broad perspective, investors and traders usually opt to avoid from such weak stocks, as any weakness in the benchmark indices may push these stocks into a long-term bear grip. 

Currently, there are only two stocks in Nifty 500 index claiming new 52-week high. These stocks are Ratnamani Metals & Tubes and Carborundum Universal.

Nifty 500 stocks hitting new 52-week lows are:-

Source: spidersoftware