​Anupam Rasayan, SMEL among 10 stocks signaling downside​

Based on the Stochastic scan, Slow Stochastic has been trending below 50 levels for stocks with m-cap of Rs 10,000 crore and more (StockEdge). This implies that the stock will continue to trade lower. The data is from the previous trading session i.e. September 8. Take a look at the list.

​Stochastics in technical analysis refers to a set of oscillator indicators pointing at buying or selling opportunities based on momentum. Further, in the world of trading, it is used to link the current price of a security with a range of outcomes that may be possible.

​The tool compares the stock’s particular closing price with the price range over some period. Usually, the period for computing Stochastic is 14 days.

​Formula: %K= 100 [(C-L14)/ ( H14-L14)]

​Herein, C is the closing price, L14 is the lowest price during the reference period of 14 days and H14 is the highest price during the period.

The indicator helps in generating overbought and oversold trading signals. Also, the indicator measures the momentum of a security’s price to determine trends and predict reversals. Further, the indicator considered to be highly accurate can be used in conjunction with RSI to confirm the signal.

​Slow Stochastic %K: 31.36| Last close: Rs 2518.45

​Slow Stochastic %K: 46.98| Last close: Rs 984.3

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Slow Stochastic %K: 43.51| Last close: Rs 467.8

​Slow Stochastic %K: 40.24| Last close: Rs 503.35

​Slow Stochastic %K: 42.97| Last close: Rs 4817.75

​Slow Stochastic %K: 47.79| Last close: Rs 1270.05

Slow Stochastic %K: 47.76| Last close: Rs 144.6

​Slow Stochastic %K: 47.95| Last close: Rs 9082.7

​Slow Stochastic %K: 48.07| Last close: Rs 21,883.25

​Slow Stochastic %K: 47.51| Last close: Rs 633.3