Check out the stocks showing bullish signs with a ‘bald head’

5paisa Research Team 5paisa Research Team 30th August 2022 - 12:58 pm

The Indian stock market, which had risen nearly 15% after the bloodbath in June, has seen some profit booking over the last few days and is now consolidating as investors adjust their positions in the market.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is showing signals of past activity that is best left untouched.

One such parameter is ‘white marubozu’, which means white bald head in Japanese. This is a one-day bullish pattern with a tall white candle with no shadows. The pattern shows that buyers controlled the trading day from open to close, and is seen as a bullish pattern. It signals a bullish pattern overall.

If we use this parameter and pick large-cap stocks with a market value over Rs 20,000 crore, we get as many as 14 companies. These include Adani Power, NMDC, Abbott India, Asian Paints, Alkem Laboratories, Hero MotoCorp, Deepak Nitrite, Bata India, Coromandel International, Muthoot Finance, TVS Motor Company, Torrent Power, Gujarat Gas and Aarti Industries.

Looking beyond at stocks with market cap between Rs 5,000 crore and Rs 20,000 crore, or the mid-cap category, there are a handful of companies. These are Carborundum Universal, IIFL Wealth Management, Aditya Birla Sun Life, Kama Holdings, Firstsource Solutions and Rajratan Global Wire.

But the bulk of the companies fall in the small and micro-cap space.

Man Infraconstruction, ITDC, Prime Focus, Nelco, Electrosteel Casting, GMR Power and Urban, Camlin Fine Sciences, Gensol Engineering, PG Electroplast, Imagicaaworld, Aditya Vision, Jyoti Resins, Ugro Capital, MosChip Technologies, Sastasundar Ventures, Rama Steel Tubes, TruCap Finance and Ruby Mills are among those with a market value of at least Rs 1,000 crore.

Some names still lower down the order with bullish tendency include: Timex Group, CL Educate, Max India, Shankar Lal Rampal, Ram Ratna Wires, Chemcrux, Zota Healthcare, Lords Chloro Alkali, Singer India, Kotyark Industries, Tuticorin Alkali, Rama Phosphates, Knowledge Marine and DP Wires.