Voda-Idea, UCO Bank: 10 stocks under Rs 10 that can fall 10% from here

Until there is a major shift in the mood of traders and investors, this segment may continue to show deterioration in value.

Benchmark indices have been gaining ground steadily over the last couple of sessions. The mood has also boosted sentiment in the small-cap universe as well. However, the volume scenario and price confirmation is not satisfactory for a further sustainable upside in this market segment.

The technical indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) suggest a bottom formation on the daily chart. However, the major moving averages such as the 50-days moving average (DMA), 100-DMA and 200-DMA are not indicating any turnaround condition.

A number of stocks have gained ground with bare minimum volumes and even hit the upper circuit filter even as the upside remains capped per the weekly and monthly charts. All this indicates selling pressure at higher levels. The small-cap segment had seen a lack of buying interest when indices were trading at lifetime highs before the coronavirus (Covid-19) pandemic broke out and sent the markets into a tailspin. Until there is a major shift in the mood of traders and investors, stocks in this segment may continue to show deterioration in value.

The overall trend for small-caps holds the “sell on rise” bias and continues to witness selling pressure on every possible upside. Going forward, if the segment shows reversal with strong volumes that lasts over 10 trading sessions, a recovery may happen which needs to be observed. Till that happens, one can expect the selling pressure to mount at crucial resistance like trend line, moving averages, gap down range.

Here are 10 small-cap stocks under Rs 10 that are showing weakness on the charts and can slip at least 10 per cent from here on. Plave your trading bets carefully.

10 stocks, souce: spidersoftwareindia