Chartered Capital & Investment Faces Intense Selling Pressure Amid Consecutive Losses

The stock’s performance over recent periods highlights a challenging phase. Over the past week, Chartered Capital & Investment Ltd has recorded a fall of 8.52%, contrasting with the Sensex’s 1.32% gain. The one-month data reveals a sharper decline of 26.03%, while the benchmark index advanced by 1.46% in the same timeframe. Despite these short-term setbacks, the stock’s longer-term returns remain notable, with a three-year gain of 110.21% compared to the Sensex’s 38.81%, and a five-year return of 402.37% against the Sensex’s 95.06%. Over a decade, the stock has delivered a substantial 633.66% return, significantly outpacing the Sensex’s 230.89%.

Today's trading session was characterised by an open gap down of 4.97%, with the stock touching an intraday low of Rs 296.4, reflecting a 5.00% drop. The trading range remained narrow at Rs 2.6, indicating limited price movement amid heavy selling. Notably, the stock has been on a downward trajectory for two consecutive days, accumulating a loss of 9.63% during this period. This pattern of consecutive declines, coupled with the absence of buyers, signals heightened distress selling within the market.

Examining the moving averages, Chartered Capital & Investment Ltd’s current price stands above its 100-day and 200-day moving averages, yet below the 5-day, 20-day, and 50-day averages. This mixed technical positioning suggests short-term weakness despite longer-term support levels. The stock’s erratic trading behaviour is further underscored by a missed trading day within the last 20 sessions, adding to the uncertainty surrounding its immediate prospects.

In comparison to its sector peers within the Non Banking Financial Company (NBFC) industry, Chartered Capital & Investment Ltd’s underperformance today by 5.79% relative to the sector highlights the intensity of selling pressure specific to this stock. While the NBFC sector has generally shown resilience, this particular stock’s recent price action points to a divergence that investors should carefully monitor.

Looking at the year-to-date performance, Chartered Capital & Investment Ltd has recorded a 6.98% return, which trails the Sensex’s 9.54% gain. Over the past year, the stock’s return of 6.33% also falls short of the Sensex’s 10.33%. These figures suggest that despite the stock’s strong historical growth over multiple years, recent market conditions have constrained its relative performance.

The current scenario of exclusive sell orders and the lower circuit status is a clear indication of extreme selling pressure. This environment typically reflects a lack of confidence among investors, possibly driven by broader market concerns or company-specific developments. The absence of buyers at prevailing price levels often leads to sharp price declines, as evidenced in today’s session.

Investors should be aware that such distress selling can sometimes present opportunities for value-oriented strategies, but it also carries heightened risk. The stock’s technical indicators and recent price action warrant close observation to assess whether the selling pressure will abate or continue in the near term.

In summary, Chartered Capital & Investment Ltd is currently navigating a period of intense market pressure, with consecutive losses and a pronounced lack of buyer interest. While its long-term performance remains robust relative to the broader market, the immediate outlook is clouded by significant selling activity and price weakness. Market participants are advised to consider these factors carefully when evaluating their positions in this NBFC stock.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →