MTAR, Sammaan Capital: Strategies for 3 stocks with high retail holdings

Retail investors hold up to 45.5% stake in these 3 stocks which have under-performed thus far in 2024. What should be your trading strategy here? Find out

The benchmark equity indices have witnessed solid gains so far in the calendar year 2024 on the back of strong buying support by domestic institutional investors, even as foreign flows remained tepid.

The DIIs, mainly mutual funds, have so far pumped in Rs 3.14 trillion (Rs in lakh crore) in Indian stocks riding on steady inflows from retail investors, by way of SIPs (Systematic Investment Plan).

As a result, the BSE Sensex thus far in 2024 has gained 12.8 per cent, despite a 1 per cent decline in trades today. The NSE Nifty 50 index holds a stronger 14.7 per cent surge at 24,900-odd levels.

 

However, amid this market boom select stocks continue to underperform, and thus create a dent in investors' portfolios.

Here are 3 such stocks, wherein retail shareholders holding stands in the range of 37 - 45 per cent, and have underperformed significantly on the bourses so far this calendar year.

The shareholding pattern of Sammaan Capital, formerly known as Indiabulls Housing Finance, as of June 2024 quarter, shows that retail investors hold up to 45.53 per cent equity in the firm. Of which, 34.16 per cent are small investors with investments up to Rs 2 lakh. Meanwhile, the stock has delivered a near 16 per cent loss on the bourses thus far.

 

Similarly, retail investors hold 37.36 per cent and 38.76 per cent each in MTAR Technologies and Happiest Minds. The former stock has plunged nearly 19 per cent, while the latter has shed 8.5 per cent in 2024.

Can these stocks recover the lost ground, or will they continue to remain a thorn in retail investors' portfolios. Here's what the charts suggest:

MTAR Technologies

Current Price: Rs 1,791

Downside Risk: 9.7%

Support: Rs 1,784; Rs 1,723

Resistance: Rs 1,855; Rs 1,862; Rs 1,952

MTAR Technologies has been trading on a tepid note post the breakdown below its 200-DMA (Daily Moving Average) on January 23, 2024. Thereafter the stock attempted to conquer this key long-term moving average on two occasions, but failed. 

 

That apart, the stock recently witnessed a 'Death Cross' formation; wherein the 50-DMA (Rs 1,855) dipped below the 200-DMA (Rs 1,862), which is a bearish indicator. Off late, the stock has been consolidating above its 20-DMA since late August. The 20-DMA support stands at Rs 1,784; below which next support for the stock stands at Rs 1,723. CLICK HERE FOR THE CHART

Break and sustained trade below Rs 1,723 can trigger a fall towards Rs 1,617. On the upside, the stock will need to conquer its 200-DMA, which now stands at Rs 1,952.

Sammaan Capital

Current Price: Rs 162.40

Upside Potential: 13.9%

Support: Rs 158; Rs 151

Resistance: Rs 174; Rs 177

Sammaan Capital seems to be struggling to sustain above its 200-DMA for the last three months. The stock has repeatedly swung above and below this key moving average since mid-June.

At present, the stock is seen trading below its 200-DMA, which stands at Rs 174; above which near resistance is seen at Rs 177. For the bias to turn favourable, the stock will need to clear these hurdles, post which it can potentially rally to Rs 185-odd levels.

On the downside, the stock is attempting to form a support base around Rs 158; below which support for the stock exists at Rs 151. CLICK HERE FOR THE CHART

Happiest Minds

Current Price: Rs 807

Downside Risk: 4.7%

Support: Rs 805; Rs 792

Resistance: Rs 827; Rs 854

Happiest Minds is also seen trading below its 200-DMA. At present, the stock is testing resistance at its 200-DMA which stands at Rs 827. Further, the shorter-term moving averages at the 20-DMA at Rs 792 and the 50-DMA at Rs 805 are placed below the long-term moving average.

In case, the stock fails to conquer the 200-DMA hurdle, the stock may fall back toward its shorter-term moving average in search of support. On the downside, the stock can dip to Rs 769. For the sentiment to revive at the counter, the stock will need to conquer its 200-DMA, and also trade consistently above its 100-WMA (Weekly Moving Average), which stands at Rs 854. CLICK HERE FOR THE CHART