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PVR Inox, Lodha, Glaxo: Should you buy these 5 oversold stocks? Find out

PVR Inox, Lodha, Glaxo, MRF and Astral are trading in oversold zone. Technical charts show these stocks can gain up to 33% from present level, or fall by another 19%; here's why.

Markets, stocks, buy, sell, trading, shares, stock market

Rex Cano Mumbai

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Equity benchmark indices - the BSE Sensex and the NSE Nifty 50 have bounced back partly from the recent lows of 76,250 and 23,047, respectively, and were seen quoting around 77,000-mark and 23,300 levels.  Prior to which, the benchmark indices had dipped around 2.5 per cent so far this month, and held up to 12 per cent losses from the all-time highs.  Given the overall fall in the market, several stocks were seen trading in oversold condition on the RSI (Relative Strength Index) parameter. The 14-day RSI moves in the range of 1 - 100; with a reading below 30 considered as oversold, while a reading above 70 is considered as overbought.  The RSI helps in identifying overbought and oversold position for a particular stock or index. Do note; an oversold condition need not necessarily translate into a buying opportunity. A combination of other key momentum oscillators and moving averages need to be considered.  Here's a technical view on 5 stocks that are currently trading in oversold zone on charts.  PVR Inox  Current Price: Rs 1,090  Upside Potential: 28.4%  Downside Risk: 17.4%  Support: Rs 1,040; Rs 985  Resistance: Rs 1,150; Rs 1,235; Rs 1,300; Rs 1,330  PVR Inox stock has tumbled by almost 63 per cent from its high of Rs 1,748 in September 2024 to a low of Rs 1,073 this January. At present, the stock is trading with a negative bias across the time-frames - daily, weekly and monthly. CLICK HERE FOR THE CHART  Chart shows, that the near-term bias for the stock is likely to remain negative as long as the stock trades below Rs 1,150. On the downside, the stock seems on course to test the 200-MMA (Monthly Moving Average), which stands around the Rs 900-mark. Interim support levels for the stock are placed at Rs 1,040 and Rs 985.  On the positive front, in case the stock manages to conquer its Rs 1,150 hurdle, it can potentially surge to Rs 1,400 levels. Interim resistance for the stock can be expected at Rs 1,235, Rs 1,300 and Rs 1,330 levels.  ALSO READ: Breakout stocks: HDFC Life, ACC, LTTS can rally up to 18%; show charts  Lodha  Current Price: Rs 1,140  Upside Potential: 33.3%  Downside Risk: 13.2%  Support: Rs 1,094  Resistance: Rs 1,263; Rs 1,370; Rs 1,420  Lodha has shed 37 per cent in the last one month, from levels of Rs 1,520 to a low of Rs 1,110. At present, the stock is seen trading close to its long-term support - the 20-MMA, which stands at Rs 1,094. The stock has consistently traded above this long-term average since May 2023. CLICK HERE FOR THE CHART  As long as the 20-MMA is held on a monthly closing basis, Lodha can attempt a pullback to Rs 1,520 levels; with interim resistance expected around Rs 1,263, Rs 1,370 and Rs 1,420 levels. On the flip side in case the support is violated the stock can extend the slide to Rs 990.  GlaxoSmithKline Pharma (Glaxo)  Current Price: Rs 2,025  Upside Potential: 21%  Downside Risk: 18.5%  Support: Rs 1,960  Resistance: Rs 2,200; Rs 2,245; Rs 2,325; Rs 2,365  Glaxo stock has witnessed a massive 54.4 per cent crash from a high of Rs 3,067 to a low of Rs 1,987 in just six months. The stock looks fairly weak on the charts and is seen seeking support at its 100-WMA (Weekly Moving Average), which stands at Rs 1,960. CLICK HERE FOR THE CHART  Break of the same, shall open the doors for a further dip towards Rs 1,700 - Rs 1,650 levels, shows the long-term chart. For the sentiment to revive at the counter, Glaxo stock will need to break and trade consistently above the Rs 2,100 levels. Following which, a relief rally up to Rs 2,450 levels seems possible. On the way up, the stock is likely to counter resistance around Rs 2,200, Rs 2,245, Rs 2,325 and Rs 2,365.  ALSO READ: Siemens witnessed its steepest fall in 30-day period, down 28%; what next?  MRF  Current Price: Rs 1,14,550  Upside Potential: 15.2%  Downside Risk: 13.7%  Support: Rs 1,11,112  Resistance: Rs 1,17,00; Rs 1,22,735; Rs 1,25,200; Rs 1,28,000  MRF stock has cracked by 34.4 per cent in the last 11 months. At present, the stock is seen trading near its super trend line support on the monthly scale, which stands at Rs 1,11,112. This is key support for the stock, as MRF has traded consistently above the same since November 2020. CLICK HERE FOR THE CHART  As long as this support is held, the stock can attempt a pullback to Rs 1,32,000; with interim resistance seen placed at Rs 1,17,00, Rs 1,22,735, Rs 1,25,200 and Rs 1,28,000 levels. On the downside, in the worst case scenario, the stock could slide and test its 200-DMA (Daily Moving Average), which stands at Rs 98,900.  Astral  Current Price: Rs 1,494  Upside Potential: 18.5%  Downside Risk: 8.6%  Support: Rs 1,470  Resistance: Rs 1,623; Rs 1,720  Astral stock is precariously placed on the technical charts; on one hand the key momentum oscillators are showing signs of a likely pullback with a positive crossover on the RSI; while on the other, the index is on verge of giving a negative breakout on the monthly chart. A monthly close below Rs 1,545 shall confirm the same. CLICK HERE FOR THE CHART  For now, the recent low at Rs 1,470-odd levels is expected to act as near support for the stock; break and trade below the same can trigger a fall towards Rs 1,365 levels. On the positive front, sustained trade above Rs 1,54 can help revive the mood at the counter, with a potential rally towards Rs 1,770 levels. Interim resistance for the stock on its way up can be expected around Rs 1,623, Rs 1,720 levels. 

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First Published: Jan 16 2025 | 1:16 PM IST

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