Three stocks investors should stay away from

Published October 19, 2018

The market is volatile and uncertain. Investors are unsure if it is the right time to invest their money in or to sit wih cash. But we have our hands on three stocks one should stay away from for the time being.

Piramal Enterprises Li (PEL.NS) Close: 2 098.75

Piramal Enterprise Limited traded in a sideways trend for over an year before it gave a break down from its support of 2320 rupees early this month. The stock has also broken down from the long term trend channel and support of 2300. It fell over 9 per cent on Wednesday on high volume.
Volume has recently been high on days with falling prices and low on days with rising prices. The momentum indicator RSI is also negative and weak. This indicates increasing pessimism among investors.
There are pivot points at 2065 and then further down at 1402 rupees in the long term chart, and resistance is around 2300-2320.
The stock is overall assessed as technically negative for the medium to long term.
Investtech's outlook (one to six months): Negative

Bank of India (BANKINDIA.NS) Close: 76.75

Bank of India is in a falling trend channel in the medium term. The stock has fallen over 60 per cent since January. This shows that investors over time have sold at lower prices to get out of the stock, and indicates negative development for the company.
The stock has marginally broken down through the support at rupee 77.00. An established break predicts a further decline.
However, volume has previously been high at price tops and low at price bottoms. This weakens the falling trend and could be an early signal for a coming trend break on the upside. Though it can only be confirmed if the price manages to break out of the falling trend channel, and moreover, above the resistance of 104 rupees. Until then the stock is overall assessed as technically negative for the medium term.
Average volatility per month in the stock is over 23 per cent so one should be conscious of that.
Investtech's outlook (one to six months): Negative

Indiabulls Housing Fin (IBULHSGFIN.NS) Close: 788.65

Indiabulls Housing Finance Limited traded between resistance of 1421 and support of 1051 rupees for almost a year before crashing down by over 40 per cent from the top.
The stock price on Wednesday fell over 14 per cent before settling just under its long term support of 800 rupees. If the stock price continues to tumble, it may fall further to 630 levels.
In case of any reaction on the upside, there is short term resistance between 1130 and 1210 rupees.
Negative volume balance shows that volume is higher on days with falling prices than days with rising prices. This indicates decreasing optimism among investors. Falling momentum weakens the stock price futher. The stock is overall assessed as technically negative for the medium term.
Investtech's outlook (one to six months): Negative

The analyses are based on closing price as per October 17, 2018. Maintaining proper stop loss is always recommended.