Coal India, PNB: How to trade stocks that underperformed amid market rally

Canara Bank crossed the 200-day moving average (DMA) for the first after July, 2019.

The stock market has witnessed a stellar rebound as the benchmark indices have zoomed over 70 per cent from their respective March lows. At 01:44 PM, the S&P BSE Sensex was trading at 44,251 levels while NSE's Nifty was just shy of the crucial level of 13,000. However, amid this market rally, there have been few counters which have underperformed the market. 

Here's a look at how some of the underperformers look on charts and what should be your trading strategy.

Canara Bank (CANBK): For the first time after July 2019, this counter crossed the 200-day moving average (DMA) on Friday. If this up move sustains for a few more sessions, then the rally may eventually see an upside towards Rs 120 and Rs 140 levels, as per the daily chart. The support stays at Rs 96.70, which is its 100-DMA. The overall trend looks promising as the Moving Average Convergence Divergence (MACD) is holding ground above the zero line. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA): With a decent close above the 200-DMA, this counter is set to rise further towards Rs 60 and Rs 65 levels. The support comes in at Rs 45.70, which is its 100-DMA. The Relative Strength Index (RSI) is attempting to cross the resistance of 67 value. If that occurs, then the stock may see a firm strength and intensity to climb higher levels. The volume is gradually increasing exhibiting stable interest of market participants. CLICK HERE FOR THE CHART

Punjab National Bank (PNB): This counter is attempting to cross 200-DMA at Rs 33.45 levels. This resistance needs to be conquered with strong volumes to exhibit a firm trend. The support comes in at Rs 31.20 levels, which is its 100-DMA. The RSI has entered the overbought condition indicating profit-booking and selling pressure, which is a sign of concern. CLICK HERE FOR THE CHART
 
Coal India Ltd (COALINDIA): The weekly chart shows the trendline resistance at Rs 134, which the counter needs to cross firmly to gain positive sentiment. The RSI needs to cross the resistance of Rs 53 to regain the buying strength, as per the weekly chart. The 200-DMA falls at Rs 126.50 level, which is also another hurdle for the stock. CLICK HERE FOR THE CHART

Indian Oil Corporation Ltd (IOC): The formation of “Double Bottom” pattern can be seen on the weekly chart. This has a neckline breakout around Rs 97 levels. It did manage to cross 200-DMA at Rs 85, but acquiring the follow-up buying has become a challenge for this stock. The overall trend is positive, till it defends the support of Rs 82 level. CLICK HERE FOR THE CHART