Even as the NSE benchmark Nifty 50 index and the broader Nifty 500 signed-off October with gains up to 4.5 per cent, nearly 300 out of the Nifty 500 stocks underperformed the key indices, shows data.
According to ACE Equity data, as many as 169 stocks ended with losses last month despite the broader market gain. Data shows that these 10
Nifty 500 stocks declined in the range of 10 - 23 per cent.
Tata Investment Corporation was the top loser, down 22.7 per cent followed by Wockhardt down 15.5 per cent. Cohance Lifesciences, Redington, Zee Entertainment, Reliance Infrastructure, Ola Electric Mobility, Concord Biotech, Maharashtra Scooters and Jindal Saw were the other major losers.
Will the tide turn favourable for these stock losers in November or will they extend losses? Here's a technical outlook on 5 of these October losers.
Ola Electric Mobility
Current Price: ₹49.20
Likely Target: ₹62 / ₹41.75
Upside Potential:
Downside Risk:
Support: ₹48.95; ₹48.60
Resistance: ₹53.15; ₹55.27
Ola Electric stock is trading near its 100-Day Moving Average (100-DMA) support which stands at ₹48.95; below which the 20-Week Moving Average (20-WMA) at ₹48.60 is likely to act as near support. In case, these supports fail, the stock can drop to ₹41.75, warns the medium-term chart.
However, Ola Electric has witnessed a 'Golden Crossover' on the daily chart; thus implying that the stock may potentially trade with a favourable bias in the short-to-medium term. As such, the stock needs to cross the 200-DMA and 50-DMA at ₹53.15 and ₹55.27 levels, respectively, in order to gain upside momentum and potentially rally to ₹62.
Wockhardt
Current Price: ₹1,321
Likely Target: ₹1,555
Upside Potential:
Support: ₹1,277; ₹1,260; ₹1,210
Resistance: ₹1,406; ₹1,463
Wockhardt share is seen testing the super trendline support around ₹1,277 on the weekly scale - a key technical indicator the stock has held since June 2023. As long as this support is held the stock is likely to trade with a cautiously optimistic bias. Support for the stock can be anticipated around ₹1,260 and ₹1,210 levels.
Having said that, the upside for the stock seems to be capped around ₹1,555 levels for now; with interim resistance likely at ₹1,406 and around the 200-DMA at ₹1,463 levels.
Tata Investment Corporation
Current Price: ₹809
Likely Target: ₹989
Upside Potential:
Support: ₹806; ₹773
Resistance: ₹883; ₹942
Tata Investment Corporation, which was the top loser in October has declined over 33 per cent from its peak of ₹1,185. The stock at present is seen testing support around its 50-DMA at ₹806; below which support exists at ₹773. Select key momentum oscillators have reached the oversold zone on the daily chart; hence a short-term pullback cannot be ruled out.
In case of a bounce back, the stock may look to recover 38.2 per cent or 50 per cent of the recent fall, indicating a potential target of ₹942 and ₹989, respectively. The 20-DMA at ₹883 may act as a near-term hurdle.
Jindal Saw
Current Price: ₹174.50
Likely Target: ₹130
Downside Risk:
Support: ₹171.50; ₹164
Resistance: ₹289; ₹208
Jindal Saw is seen testing its 200-WMA at ₹171.50 levels for the first time since November 2022. The chart set-up, however, looks weak; hence the stock may break below this key average.
As such, the stock can dip towards the 50-Month Moving Average (50-MMA) support at ₹164 levels; below which a crash to ₹130-odd levels cannot be ruled out. The short-term trend is likely to be negative below ₹189; above which key hurdle stands at ₹208.
Zee Entertainment
Current Price: ₹101
Likely Target: ₹88
Downside Risk:
Support: ₹97.35; ₹92.70
Resistance: ₹107; ₹112; ₹115
Zee Entertainment stock continues to underperform for the second straight year. The short-term trend for Zee is likely to remain negative as long as the stock quotes below ₹107; above which resistance for the stock exists at ₹112 and ₹115 levels.
On the downside, the stock can potentially slide to ₹88 levels, indicates the quarterly Fibonacci chart. Intermediate support for the stock can be anticipated around ₹97.35 and ₹92.70 levels.
 "Ola Electric among top 10 stock losers in October; full list, strategy here")
