Stocks that look technically very weak on charts - avoid buying for next couple of months

While NIFTY is showing an intermediate uptrend the long term view is still negative and there are chances that before the end of the current calender year NIFTY may see new lows. 

There are couple of stocks that are looking very weak on charts technically which also show how bearish are investors on certain stocks may be due to company's financial health and performance disappointments. 

Such stocks may have a very good name in the market and everybody will ask you to buy at these low levels however give it some more time before taking a call

Imaging if these stocks are currently performing in a poor way with NIFTY around 5500 what will happen to the same set of stocks when NIFTY reaches down to 4300 or so. There is a high chance that these companies may further fall by another 10% to 15% from current levels and that will hold your money and drag it for couple of more months

How to find stocks that are completely weak on charts technically?

1. A steady downward pattern, inspite of NIFTY going up

2. Follows 5 wave downward Elliot wave pattern and continuously follows it after a 3 wave correction

3. Chandelier exits lagging indicator is well above the candle stick charts which indicates more weakness

4. MACD for a long time follows a downward line with no signs of cross over happening and even if it happens it reverses in a while

5. Force index points a steady decline in its trend

Out of all that I mentioned it is highly important to correlate Elliot wave pattern with chandelier exits and that may be very powerful from a long term perspective

Following are the stocks that you should avoid keeping in your portfolio this year from an investment perspective. Give it some more time and then finally try buying it

1. Reliance Communication

2. BHEL

3. BEML

4. ICSA India

5. Gujarat Fluorochemicals

6. Hindalco

7. Reliance Power

8. Reliance

9. Jindal Steel

10. Tulip Telecom

11. Canara Bank

12. Union Bank

13. Adani Enterprises

14. GMR Infra

15. United Phosphorous

16. Edserv Softsystems

17. Everonn Education

18. NIIT Limited (NIITLTD)

19. Adani Power

20. Jaiprakash Power Ventures