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These 11 stocks trade about 25% below their one year high, but are above 200-DMA

The general rule is if a stock is trading above its 200-DMA, the trend is largely upward, although there could be a short-term downward movement.

March 26, 2021 / 01:00 PM IST
The recent correction in market has been primarily led by rising bond yields in the US and concerns around the rising coronavirus cases. The benchmark index Sensex fell over 6 percent from its recent high of 52,516.76 (recorded on February 16, 20201) to 49180.31 on March 24. 2021. A similar or much worse crash was seen in individual stocks as well. When looking at a stock from technical perspective, analysts suggest that when a counter is trading much below its 52-week high, the valuations can be looked at. But at the same time, it should be above its 200-daily moving average. The 200-DMA can help traders filter stocks that are showing signs of strength amid market volatility. The general rule is if a stock is trading above its 200-DMA the trend is largely upward, although there could be a short-term downward movement. On analysis, Moneycontrol found there are 11 stocks among the BSE500 index that have fallen more than 25 percent from their 52-week high but are still trading above their 200-DMA. We have considered only those stocks that recorded their 52-week high in 2021. (Data Source: ACE Equity) "It seems quite unlikely that the market (Nifty) will break the 13,000 mark. The market correction in the present circumstances is driven by technical factors like rising global bond yields, rebalancing in global ETFs, and others. This is likely to get over by March, and April should see a focus on corporate earnings, which at present appear robust", says Naveen Kulkarni, Chief Investment Officer, Axis Securities. A look at the stocks:
The recent correction in the market has been primarily led by rising bond yields in the US and concerns around the rising coronavirus cases. The benchmark index Sensex fell over 6 percent from its recent high of 52,516.76 (recorded on February 16, 20201) to 49180.31 on March 24. 2021. A similar or much worse crash was seen in individual stocks as well. From a technical perspective, when a counter is trading much below its 52-week high, the valuations can be looked at. But at the same time, it should be above its 200-daily moving average. The 200-DMA can help traders filter stocks that are showing signs of strength amid market volatility. The general rule is if a stock is trading above its 200-DMA the trend is largely upward, although there could be a short-term downward movement. On analysis, Moneycontrol found there are 11 stocks among the BSE500 index that have fallen more than 25 percent from their 52-week high but are still trading above their 200-DMA. We have considered only those stocks that recorded their 52-week high in 2021. (Data Source: ACE Equity). A look at the stocks:
Central Bank Of India | The stock has fallen 37 percent to Rs 16.75  on March 24, 2021, from its 52-week high of Rs 26.40 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 15.42.
Central Bank Of India | The stock has fallen 37 percent to Rs 16.75  on March 24, 2021, from its 52-week high of Rs 26.40 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 15.42.
Suzlon Energy | The stock has fallen 35 percent to Rs 5.63  on March 24, 2021, from its 52-week high of Rs 8.68 (recorded on January 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 4.60.
Suzlon Energy | The stock has fallen 35 percent to Rs 5.63  on March 24, 2021, from its 52-week high of Rs 8.68 (recorded on January 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 4.60.
Indiabulls Real Estate | The stock has fallen 33 percent to Rs 84.55  on March 24, 2021, from its 52-week high of Rs 125.50 (recorded on March 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 67.06.
Indiabulls Real Estate | The stock has fallen 33 percent to Rs 84.55  on March 24, 2021, from its 52-week high of Rs 125.50 (recorded on March 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 67.06.
IFB Industries | The stock has fallen 31 percent to Rs 1008.80  on March 24, 2021, from its 52-week high of Rs 1458.10 (recorded on January 27, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 796.87.
IFB Industries | The stock has fallen 31 percent to Rs 1008.80  on March 24, 2021, from its 52-week high of Rs 1458.10 (recorded on January 27, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 796.87.
Jindal Stainless | The stock has fallen 30 percent to Rs 67.05  on March 24, 2021, from its 52-week high of Rs 95.95 (recorded on January 12, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 58.14.
Jindal Stainless | The stock has fallen 30 percent to Rs 67.05  on March 24, 2021, from its 52-week high of Rs 95.95 (recorded on January 12, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 58.14.
Mahindra CIE Automotive | The stock has fallen 29 percent to Rs 165.60  on March 24, 2021, from its 52-week high of Rs 234.50 (recorded on February 16, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 144.02.
Mahindra CIE Automotive | The stock has fallen 29 percent to Rs 165.60  on March 24, 2021, from its 52-week high of Rs 234.50 (recorded on February 16, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 144.02.
Jindal Stainless (Hisar) Ltd. | The stock has fallen 29 percent to Rs 116.65  on March 24, 2021, from its 52-week high of Rs 164.80 (recorded on January 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 105.15.
Jindal Stainless (Hisar) Ltd. | The stock has fallen 29 percent to Rs 116.65  on March 24, 2021, from its 52-week high of Rs 164.80 (recorded on January 8, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 105.15.
Bank Of India | The stock has fallen 29 percent to Rs 72.20  on March 24, 2021, from its 52-week high of Rs 101.45 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 51.43.
Bank Of India | The stock has fallen 29 percent to Rs 72.20  on March 24, 2021, from its 52-week high of Rs 101.45 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 51.43.
Bank Of Baroda | The stock has fallen 28 percent to Rs 71.75  on March 24, 2021, from its 52-week high of Rs 99.80 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 56.96.
Bank Of Baroda | The stock has fallen 28 percent to Rs 71.75  on March 24, 2021, from its 52-week high of Rs 99.80 (recorded on February 19, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 56.96.
Redington (India) | The stock has fallen 25 percent to Rs 150.25  on March 24, 2021, from its 52-week high of Rs 201.20 (recorded on February 24, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 125.69.
Redington (India) | The stock has fallen 25 percent to Rs 150.25  on March 24, 2021, from its 52-week high of Rs 201.20 (recorded on February 24, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 125.69.
Hindustan Copper | The stock has fallen 25 percent to Rs 123.80  on March 24, 2021, from its 52-week high of Rs 165.10 (recorded on March 2, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 53.60.
Hindustan Copper | The stock has fallen 25 percent to Rs 123.80  on March 24, 2021, from its 52-week high of Rs 165.10 (recorded on March 2, 2021). Despite that, it is trading at a price well above its 200-DMA level of Rs 53.60.
Ritesh Presswala Research Analyst at Moneycontrol
first published: Mar 26, 2021 12:39 pm

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