Recent Price Movement and Market Performance
Computer Point’s share price has been under pressure, falling to a new 52-week low of ₹4.06 during the trading session on 03-Dec. This decline is part of a broader negative trend, with the stock losing 3.59% over the past two days. The recent weekly and monthly returns further highlight the stock’s struggles, with losses of 4.60% and 5.20% respectively, in stark contrast to the Sensex’s modest gains of 0.59% and 1.34% over the same periods. Year-to-date, the stock has plummeted by 30.80%, while the Sensex has advanced by 8.92%, underscoring the widening performance gap between Computer Point and the broader market.
Technical Indicators Signal Continued Weakness
From a technical standpoint, Computer Point is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This pervasive weakness across multiple timeframes suggests sustained selling pressure and a lack of short-term and long-term buying interest. Such a technical setup often deters investors and traders, contributing to further downward momentum.
Investor Participation and Liquidity Considerations
Interestingly, despite the falling price, investor participation has increased. Delivery volume on 02-Dec surged by 53.3% compared to the five-day average, reaching 10,290 shares. This rise in delivery volume indicates that more investors are holding shares rather than engaging in intraday trading, which could reflect a mix of long-term holders maintaining positions or bargain hunters entering at lower price levels. However, this increased participation has not yet translated into price support, as the stock continues to underperform.
Relative Underperformance Within Sector and Market
On the day, Computer Point underperformed its sector by 0.93%, signalling that the stock’s decline is not solely due to sector-wide weakness but also company-specific factors or market sentiment. The stock’s liquidity remains adequate for trading, with the ability to handle sizeable trade volumes without significant price disruption, yet this has not prevented the recent price slide.
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Long-Term Performance Context
While the short-term outlook appears challenging, it is important to note that Computer Point has delivered exceptional returns over the longer term. Over the past three years, the stock has gained 76.74%, significantly outperforming the Sensex’s 35.37% rise. Even more striking is the five-year return of 1,132.43%, dwarfing the benchmark’s 90.68% gain. This long-term outperformance suggests that the current weakness may be cyclical or related to transient factors rather than a fundamental deterioration.
Summary of Factors Driving the Current Decline
The recent fall in Computer Point’s share price can be attributed to a combination of sustained underperformance relative to the benchmark and sector, a technical downtrend with the stock trading below all major moving averages, and a new 52-week low signalling bearish sentiment. Although investor participation has increased, it has not been sufficient to reverse the downward momentum. The stock’s liquidity remains adequate, but the persistent negative returns over the past month and year indicate ongoing challenges that investors are pricing in.
In conclusion, Computer Point’s share price decline on 03-Dec reflects a continuation of recent weakness driven by both technical factors and relative underperformance. Investors should monitor whether increased delivery volumes translate into price support or if the downtrend persists amid broader market conditions.
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