Honasa showing signs of peak fear after losing 39% in 1 week: Anand James
A near marubozu candle on Friday suggests that fear is peaking in Honasa shares, which lost 39% last week, says Anand James, Chief Market Strategist, Geojit Financial Services.
«The downtrend is now aged 49 days with a cut of nearly 60% from the top, with the last four days alone seeing nearly 40% cuts. Thus, even though we could not spot any reversal signs as yet, the age of the downtrend could attract bargain buyers,» he says.
Edited excerpts from a chat:
Following Friday’s rally, what's your plan for the monthly expiry?
Though last week completed eight instances of lower highs on the trot, the bounce off the 50 SMA and the close thereafter above the lower Bollinger band, both in weekly charts, hints at the revival of animal spirits. Friday’s rise of 2.39% also marked the highest single day rise since July 2024. Until then, the downtrend since 27th September had lasted 36 days resulting in a drawdown of 11.4% or 690 points. When put in this perspective, Friday’s leap could be seen as a relief rally. So the question is one of sustenance of strength. We feel that the performance near 24030 could decide whether the present move could fizzle out into a dead cat bounce or not. A close above the same could set 25262 as the likely short term objective, but with stiff intermediate challenges at 24420 and 24770.
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