2 Beaten-Down Shares on Bulls’ Radar for Next Week!
Friday’s session was not a good one for the broader markets, with the benchmark index falling 0.21% to 17,856.5, gaining a mere 2.45 points for the week. The index has been trading in a range for the last many sessions, but momentum in some counters is still there.
Here’s a list of 2 stocks that are probably coming on the bulls’ radar for the next week as seen through the price action of Friday. These counters are heavily beaten-down and still in a downtrend, but are providing a very good risk-to-reward ratio for long opportunities.
Greenpanel Industries Limited
Greenpanel Industries Ltd (NS:) is a manufacturer of plywood, laminated floors, wood panels, etc., having a market capitalization of INR 3,326 crores. After a noticeable plunge of 41% in the last one year, the stock is now trading at a P/E ratio of 13.84, compared to peers such as Greenply Industries Ltd (NS:) and Century Plyboards (NS:), both of which are trading at a P/E of 17.95 & 36.31, respectively.
Image Description: Daily chart of Greenpanel Industries with volume bars at the bottom
Image Source: Investing.com
In Friday’s session, the stock formed a bullish engulfing candlestick pattern on the daily chart which is pointing to a bounce against the current downtrend, at least for the time being. A counter-trend rally to INR 305 can be seen in the next week, from the CMP of INR 284.25.
Vaibhav Global Limited
Vaibhav Global Ltd (NS:) is a retailer of fashion jewelry and lifestyle accessories, having a market capitalization of INR 4,828 crores. Surprisingly, FIIs hold a decent 21.12% stake in such a small company while mutual funds are also showing confidence with a 5.54% stake, as of December 2022.
Image Description: Daily chart of Vaibhav Global with volume bars at the bottom
Image Source: Investing.com
The stock is down 29.8% in the last one year but now seems to be reversing from a very robust demand zone of around INR 290, which has been tested several times this year. After making a big bullish candle on Friday, closing at INR 300.75, the stock looks ready to bolster above the previous swing high of INR 308.75, marked this month.
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