Stuck with Vodafone, SpiceJet? Trading strategies for top losers of 2021

After a rollercoaster 2020 in which the Indian markets hit multi-year lows owing to uncertainty caused by the Covid-19 and later scaled record highs once the situation improved, the market has been relatively resilient during the second phase. Despite rising Covid infections, the benchmark S&P BSE Sensex has risen 3.66 per cent in 2021 (till May 10), so far. 

That said, compared to their global peers, Indian bourses have underperformed thus far in calendar year 2021 (CY21), as most developed markets have gained around 14 - 15 per cent. Equity market is in a ‘vulnerable zone’ and are likely to remain very volatile, said analysts at HSBC in a recent report. They, however, have ruled out a deep correction for now. READ MORE

Among individual stocks, a total of 140 of the BSE500 stocks have given negative return so far in CY2021. Among these, Future Retail (-41.86%, till May 10) has been the top laggard, followed by Bliss GVS (-39.5%), SpiceJet (-33%), Hathway Cable & Datacom (-30.12%), and Vakrangee (-27.5%). Among others, Ujjivan Financial Services has slipped 26.84 per cent, Bandhan Bank has fallen 26.3 per cent, Ujjivan Small Finance Bank has slid 26 per cent, and Vodafone Idea 22.9 per cent, among others.

Here's how some of these stocks look on the charts

Future Retail Limited (FRETAIL)

Likely target: Rs 40

Downside potential: 12.57%
 
The recent reversal has seen the counter witnessing selling pressure near Rs 55 value and thereafter the gap down below Rs 50 has further dampened the upside bias, as per the daily chart. The Moving Average Convergence Divergence (MACD) fails to conquer the zero line, as it has reversed in a downward direction, indicative of a negative bias. The overall trend is weak with the trend heading towards Rs 40 mark, which is the recent reversal level. CLICK HERE FOR THE CHART

SpiceJet Ltd (SPICEJET)

Likely target: Rs 71 - Rs 75 (after breaking out of 200-DMA)

Upside potential: 3.73% - 9.57%

The stock is struggling to conquer the resistance of 200-day moving average (DMA), placed at Rs 68.45 levels. If it crosses this level, the upside breakout may see a next upside towards Rs 71 and Rs 75 levels. The immediate support comes at Rs 65 levels, as per the daily chart. CLICK HERE FOR THE CHART

Bandhan Bank Ltd (BANDHANBNK)

Likely target: Rs 275 - Rs 250

Downside potential: 6.14% - 14.68%

The resistance of 100-weekly moving average (WMA) has remained firm for the upside bias, as per the weekly chart, for this stock. This resistance led to a breach of 50-WMA, placed at Rs 333 levels. The overall trend is losing the upside sentiment as major support levels are broken. The next immediate support comes at Rs 275 and Rs 250 level. The MACD has broken the zero line downward, indicating weakness and a build-up of a negative sentiment. CLICK HERE FOR THE CHART
 
Vodafone Idea Limited (IDEA)

Likely target: Rs 9 - Rs 9.25

Upside potential: 11.11% - 14.20%

The negative crossover between 200-DMA and 100-DMA with 50-DMA suggests a “Death Cross” for the counter. That said, until the support of Rs 7.90 is not breached decisively, the upside bias may see recovery towards Rs 9 and Rs 9.25 levels, as per the daily and weekly charts. The volumes have been sluggish on the weak/negative closing, suggesting lower interest of market participants in the bearish outlook. CLICK HERE FOR THE CHART

Indiabulls Housing Finance Ltd (IBULHSGFIN)

Outlook: Breakout above 200-DMA

The counter needs to cross 200-DMA, placed at Rs 193.80 mark, to build a positive outlook. Until then, till the support of Rs 174 is held, the upside bias may see an addition in long sentiments. The RSI and MACD are trading with a positive crossover, indicating a bullish momentum currently. CLICK HERE FOR THE CHART