Stock market investors have seen their wealth multiply over the past year, after markets began to rebound from the March 2020 slide. At the headline level, the S&P BSE Sensex Index has doubled from the low reached in March 23, 2020 and claimed a new all-time high of 52,859 in June 2021.
Individually, certain stocks, including Tanla Platforms, Adani Total Gas, Adani Enterprises, Birlasoft and Laurus Labs, have returned between 700% and 1,900% over the period amid a widespread rally and positive news flow.
So is there more steam left in these stocks? Here’s a graph check:
Tanla Solutions Limited (TANLA) Probable destination: 700 rupees Downside potential: 9% The stock is gradually losing its positive bias, according to the daily chart. This stock has multiple resistances of Rs 850, Rs 970 and Rs 1000 levels on the upside. Given this, overall momentum appears weak at current levels with Moving Average Convergence Divergence (MACD) breaking through the zero line. The weakness may drag the stock towards Rs 700 levels. CLICK HERE TO SEE THE GRAPH Laurus Labs Limited (LAURUSLABS) Probable destination: 600 rupees Potential for improvement: 5% Few previous cases have shown that stocks lost steam each time they entered the overbought category of the Relative Strength Index (RSI). However, the stock continues to show strength. Current prices are trading under overbought conditions, but momentum remains towards the Rs 640 levels. In the future, as long as it does not break the support level of the Rs 600 levels, the force may remain intact, according to the daily chart. CLICK HERE TO SEE THE GRAPH Alkyl Amines Chemicals Limited (ALKYLAMINE) Probable destination: Rs 3,600 and Rs 3,660 (until you have Rs 3,450) Potential for improvement: 2% and 3.50% The stock has soared more than 700 percent since March 2020.
However, it lost bullish momentum after the stock split in May 2021. Technical indicators have formed a negative bias, suggesting weakness and loss of strength. Now if the counter breaks below the 3,450 rupee mark, it may enter a bearish phase. Until then, the recovery may see a revival towards the Rs 3,600 and Rs 3660 levels. CLICK HERE TO SEE THE GRAPH BIRLASOFT LIMITED (BSOFT) Panorama: Slow momentum below Rs 400 levels. Until this action breaks through the range of the Rs 410 to Rs 400 level, backed by volumes, you may continue to see profit booking. The overall trend will remain slow if it continues to trade below the Rs 400 levels. Support comes at the Rs 380 and Rs 370 levels. CLICK HERE TO SEE THE GRAPH Hindustan Copper Limited (HINDCOPPER) Probable destination: 135 rupees and 130 rupees Downside potential: 7% and 10% After a 682 percent rally since March 23, 2020, the stock is now trading below the support of Rs 160 levels, according to the daily chart. This weakness indicates further downside towards the Rs 125 and Rs 119 levels. The MACD has also broken the zero line down, suggesting further weakness. CLICK HERE TO SEE THE GRAPH