Nifty is trading near highs but here are three large-cap stocks struggling near support levels. Will they bounce and offer some relief to the market?
ITC at Line of Support
Source: Chartalert.com
I covered ITC few days back near Gap-up support of 243 but it seems the stock did not like that support and now has slipped to Ultimate low. A breakdown here will even panic long term investors. So, one can hope of some Value buying in the stock. A bounce here can bring welcome relief to Nifty bulls
L&T at Line of Support
Source: Chartalert.com
L&T stock also is at critical line of support and if one is hopeful of the market, then one can expect some relief around current levels.
M&M at Line of Support
Source: Chartalert.com
M&M stock is at ultimate low. It has never seen a lower level than this since May 2014
What does this all mean?
These three stocks are at Make or Break level. As a long term investor, one cannot find a more attractive opportunity than this. Having said that, a breakdown here means something is seriously wrong and no matter how much conviction you have – Please have a stop loss 5% below the support levels to avoid getting trapped in Wealth destruction exercise. You never know what lies ahead.
It’s always better to wait for confirmation before jumping in. Let the stock bounce and sustain the boune for a day before making the commitment. The only downside here is that stop-loss becomes much deeper
These stocks are not for momentum traders.Please do your own due diligence before trading
ITC as of 11 Jan 2020
M&M
L&T
M&M seems to have bounced well from the support. Rest 2 still waiting