3 negative stocks to stay away from

Published October 10, 2018

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Investtech has created algorithms that score any stock based on certain criteria: trend, support and resistance, volume, momentum and price formations. So I went through the stock selection option and indentified three stocks that are overall scored negative by these smart algorithms on all time frames. I made sure that I chose ones that are liquid enough for anyone to trade.

Crompton Greaves Consu (CROMPTON.NS) Close: 202.35
Crompton Greaves Consumer Electricals Limited is one of the top negative scorers on our list of negative stocks with -88 points to its credit.
The stock price has broken down from an approximate horixontal trend channel in the medium term. It also broke the neckline from a head-and-shoulders formation on the longer term chart at 220 rupees after investors have sold at ever lower prices. A negative signal has been triggered and further decline for the stock is indicated. The price target from the formation comes to around 148-150 rupees. In case of a reaction there is resistance at 220 now.
The fall has been supported by high volume, hence giving a negative volume balance, and the short term momentum is weak too. These turn out to be the supportive indicators for the price fall.
Investtech's outlook: Negative

Tata Motors Limited (TATAMOTORS.NS) Close: 184.35

Tata Motors Limited scores -80 points as per Investtech's algorithms. The stock fell over 13 per cent on Tuesday itself on significantly high volume due to consistently weak numbers from its luxury car brand Jaguar Land Rover. It closed at its multi-year low.
Further the stock has broken through the the falling trend channel. As per Invettech's research done on Nordic stocks for similar cases, the stock is suggested to underperform vs. the underlying index by a significant margin.
Negative volume balance and negative momentum, with RSI below 30, have been ardent supporters in case of price fall in Tata Motors. It shows that sellers have been aggressive, selling the stock at steadily lower prices to be out of the stock.
Since there is no visible support on the medium term chart, the stock can fall further before it manages to find a ground for itself. There is resistance around 250 rupees, which is way higher than its closing price at 184.35.
Investtech's outlook: Negative

Balkrishna Industries (BALKRISIND.NS) Close: 982.10

Balkrishna Industries has a negative score of -55. Balkrishna Industries Limited has broken down through the rising trend channel in the medium term. Last week the stock gave a sell signal from a rectangle formation with a break down through the support level at 1023 and later through 1000 rupees. Further fall to 777 or lower is signalled. There are supports levels around 860 and 730 rupees.
There is resistance around 1020-1140 rupees on the short term .
Investtech's outlook: Negative

The analyses are based on closing price as per October 9, 2018. Maintaining proper stop loss is always recommended.