7 Stocks Down More Than 50% From 52-week Highs, Should You Buy?

Markets have been trading in the 57,000 to 58,000 points band for sometime now on the Sensex. Some stocks have fallen very sharply, especially from the midcap space. Here are a list of stocks that are down more than 50% from 52-week highs.

Stocks down sharply from their 52-week highs

Name	Current market price	% fall from 52-week highs
Indian Energy Exchange	137	56%
Tanla Platforms	806	61.25%
Sandur Manganese	694	58.84%
Sportking	640	50.25%
Chemplast	396	51.25%
Everest Kanto	113	61%
Indian Metals	252	51%

Should you buy these stocks now?

It's hard to say, whether some of these stocks are worthy picks from the current levels. One of the most important factors in determining if these stocks are good buys is the fact that structural fundamentals should not have changed. At the moment, the markets themselves look overvalued and hence it would not be advisable to buy into stocks. Worries over rising interest rates and fears of a recession seem to be growing only louder. Should the US or Europe move quickly into recession, we might see stocks falling only further and hence stocks that have also fallen sharply from 52-week highs, may even become further attractive.

Disclaimer

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