[ad_1]
In
last week’s article
, I looked at three new age stocks which were Zomato Ltd (NS:ZOMT), One 97 Communications Ltd (NS:PAYT), and Fsn ECommerce Ventures Ltd (NS:FSNE). I will continue with that theme this week and will look at PB Fintech Ltd (NS:PBFI), CarTrade Tech Ltd (NS:CART), and MedPlus Health Services Ltd (NS:MEDP). I am looking at these stocks as a lot of investors are getting their fingers burnt by these equities. This is because some Twitter (NYSE:TWTR) handles and TV analysts are recommending these names, even though they are in a downtrend. The logic they utilize is to buy the dip. But someone didn’t teach these buffoons that you don’t buy each dip or you will end up being broke. Thus, in this article, I will focus more on the weekly and monthly timeframes. This is as there is really no need for a short-term outlook on these stocks, as that is simply bearish.
The first stock I am looking at is Policy Bazaar. I have to admit that out of all the new-age businesses, this is one I am positive about in the long term. However, before I consider investing in it, I will wait for the equity to fall further. This is as the equity was launched at a bloated valuation and the market has punished the founders for it. I say this as the stock has fallen by 50% from a high of Rs. 1,469 to a low of Rs. 730. However, I don’t think the fall has ended. This is like one of my proprietary indicators shows that the technicals supporting the current box range at Rs. 730 are very weak. It is essentially being propped up by retail money that will scare rather easily.
Thus, once the stock breaks the support at Rs. 730, I expect the initial fall to extend until the support zone at Rs. 670 where the stock can form a new box range. However, the price zone at which I will consider Policy Bazaar as a buy is at the support zone at Rs. 504. I will consider it then, as this is a major quantitative support zone.
CarTrade Tech is the second stock I am looking at. The stock has been on a one-way street since its IPO, as it has fallen by a whopping 64% from Rs. 1,618 to a low of Rs. 588. The stock is now near a support zone at Rs. 570. However, I do not expect the stock to hold the support in the medium term. This is as the quantitative data indicates a fall until the support zone between Rs. 430 and Rs. 455. Once it reaches the support zone highlighted above, I will share my new view about it.
The third stock being covered today is MedPlus. Out of the three stocks, this has performed the best, as its launch price was Rs. 1,040 and is now trading a few points below at Rs. 1,025. Moreover, the equity has a strong candle support zone at Rs. 998. Now the big question is whether the support zone will hold?
I do not expect the support to hold, as the weekly candles indicate that the stock will have a further decline. Plus, the quantitative-based indicators have all entered the negative zone. This implies that the stock has begun a fresh bearish move in the longer time frames. However, on the daily chart, we may hold the support for a few sessions, but I believe if that occurs it will simply be a trap for traders to enter and get sucker punched. This is as the stock shows all signs of a decline until the support zone between Rs. 912 and Rs. 925. Once it reaches the support zone shared above, I will give my view about it via my Twitter handle.
Overall, the stocks mentioned above are still not at their bottom, as they have much more of a downside move left. This is as the equities are still very bearish on the technical and quantitative front. Thus, none of them ought to be considered as a buy on a dip in any scenario as of now. This is as it will be equal to you setting your cash on fire.
Good luck trading.
Disclaimer: The investments discussed by Sandeep Singh Ahluwalia may not be suitable for all investors. Thus, you must trust your analysis and judgment before making investment decisions. The report provided is for informational purposes only and should not be interpreted as a proposition to buy or sell any securities.
[ad_2]
Source link
