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Traders who are hunting for stocks that are trading at the lower levels to avoid the downside risk in case the market keeps on falling should keep Borosil Renewables Limited (NS:) on the watchlist. It is a solar glass manufacturer with a market capitalization of INR 5,362 crore.
The stock started coming on investors’ radar since morning. Looking at the daily chart structure, a medium-term downtrend is clearly visible. There’s no denying that investors who steered clear from this counter were better off than those who are invested in it. However, the picture seems to be changing as the stock jumped over 5% to INR 434, by 2:00 PM IST and surged past a falling trendline resistance on the daily chart.
Image Description: Daily chart of Borosil Renewables with volume bars at the bottom
Image Source: Investing.com
This breakout is denoting a probable trend reversal and as the stock has already been beaten down badly in the last few months, the upside can be decent. The volume backing today’s move was also astonishingly high, with a total of 3 million shares exchanging hands so far, which is 828% higher than the 10-day average volume of 323K shares. Any breakout when supported with high volume expansion is generally considered to be a reliable one.
During this downtrend, the stock fell to a low of INR 409, therefore a stop loss above it for long positions might not be a viable one. There is a resistance around INR 455 which could be deemed as the target and crossing above the same might further extend the rally to INR 470.
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