These 5 stocks have slipped over 10% in a month, but there's room for more

Adani Enterprises, Titan, Paytm and HCL Technologies and 24 others among the NSE 500 have declined over 10% in the last one month. Here are five stocks that look weaker on charts for now.

Equity market in India has been on a roller coaster ride amid the ongoing Lok Sabha elections and Q4 corporate earnings season over the last one month. 

The National Stock Exchange (NSE) benchmark index, the Nifty 50, hit new all-time highs on four occasions in the last one month, but has been unable to build on the gains. The Nifty is down 1 per cent when compared with its close of 22,666 on April 08, 2024, having registered its new peak at 22,795 on May 03, 2024.

In the meantime, the NSE 500 index has fared relatively better and was up 0.2 per cent in the same period. 

However, data shows that a fairly high number of Nifty 500 stocks, as many as 234 stocks, have underperformed the NSE 500 index in the last one month.

Top most among these is Sun Pharma Advanced Research Company. The stock has tanked as much as 53 per cent in this period. It is followed by Aster DM Healthcare, down 29 per cent.

That apart, 26 stocks including the likes of, GSPL, CoForge, L&T Technology Services, Cyient, Tata Communications, Birlasoft, Paytm, Latent View Analytics, Sonata Software, Mahindra Finance, Persistent Systems, HDFC Life Insurance, Titan, CRISIL, HCL Technologies, Adani Enterprises and Tata Elxsi have declined in the range of 10-20 per cent each.

Against this backdrop, what should be your trading strategy in such stocks? Which are the stocks that could rebound, and which are the stocks that should be avoided for now?

Here are five such stocks that can potentially fall further as they look weak on the technical charts.

Titan

Last close: Rs 3,330

Downside Risk: 11.8%

Resistance: Rs 3,375; Rs 3,428

Titan stock gave a fresh breakdown in yesterday's trading session. Following the 7 per cent fall on May 6, Titan stock fell below its 200-DMA (Daily Moving Average) for the first time in more than 13 months. Incidentally, the stock has also broken below its 50-WMA (Weekly Moving Average).

Titan stock 200-DMA stands at Rs 3,428 and the 20-WMA stands at Rs 3,375. The medium-term chart suggests that the bias is likely to favour the bears as long as the stock trades below these levels. On the downside, shares of Titan can slide all the way towards the 100-WMA, which stands at Rs 2,938. CLICK HERE FOR THE CHART

Paytm

Last close: Rs 352

Downside Risk: 9.7%

Resistance: Rs 475

Paytm stock has declined 14.8 per cent in the last one month. The stock has been trading with a negative bias post its breakdown on the weekly charts in early December 2023. Since then, Paytm stock has plunged almost 60 per cent in the last five months. CLICK HERE FOR THE CHART

The broader chart suggests that Paytm stock is likely to trade with a negative bias as long as the stock trades below its 20-WMA, which now stands at Rs 475. On the downside, the stock may revisit its panic selling low of Rs 318 registered in December.

In the near-term, Rs 350 level needs to be closely watch, break and sustained trade below the same can accentuate the fall in Paytm stock. Near hurdles for the stock stand at Rs 385 and Rs 394 in the form of 20-DMA and the 50-DMA.

Latent View Analytics

Last close: Rs 481

Downside Risk: 5.6%

Resistance: Rs 502

Latent View Analytics stock is seen trading below its short-term moving averages on the daily scale, with fresh negative divergence seen in key momentum oscillators. As such, the stock may face some downward pressure and dip towards its 200-DMA, which stands at Rs 454. The overall bias for the stock is likely to remain tepid as long as it trades below Rs 502 - Rs 517 resistance zone. CLICK HERE FOR THE CHART

Birlasoft

Last close: Rs 619

Downside Risk: 12.8%

Resistance: Rs 633

Birlasoft stock closed below its 200-DMA, which stands at Rs 633, exactly after one year. Key momentum oscillators, including the DI (Directional index) are clearly in favour of the bears. As such, the stock may trade with a negative bias as long as it holds below 200-DMA. CLICK HERE FOR THE CHART

Having said that, the weekly chart shows presence of near support in the form of 50-WMA at Rs 599. However, if this support is violated, then Birlasoft may witness a steep fall towards the next key support at Rs 540-odd levels.

Prism Johnson

Last close: Rs 158

Downside Risk: 5%

Resistance: Rs 168

Prism Johnson stock is on the verge of testing its 200-DMA support which stands at Rs 157. The stock may witness added selling pressure as and when this support gets violated, as key momentum oscillators are in favour of the bears. CLICK HERE FOR THE CHART

Below Rs 157, the stock can test lower support levels at Rs 153 and Rs 150, respectively. The overall trend is likely to remain subdued as long as the stock trades below Rs 168.