Top losers

Top loser stocks are equity shares that are trading at the highest price decrease in their prices during a specified period, precisely a market trading day that ranges from 9:30 AM to 3:30 PM. These stocks experience decreases in their market prices that are triggered by various market factors during a stock market trading day.

If top loser stocks are also part of broad market indices such as Nifty 50 and Sensex, then the movement in these indices is significantly affected due to the negative momentum in the top loser stocks.

How to calculate the percentage change in top loser stocks

The decrease in the top loser stock can be calculated in absolute and percentage terms.  It is compared with its opening price to find the change in a top loser stock during a trading day. 

The general formula to find the percentage change in a top loser stocks is:

Percentage Loss = [(Opening Price - Closing Price) / Opening Price] * 100

The above formula is used to calculate the percentage decrease in the price of a stock in comparison to its opening price. It assists investors to find and invest in top loser stocks.

What do top loser stocks indicate

1. Negative market momentum: Top loser stocks experience a decrease in the market prices, which means that the market is moving with a negative momentum, which has triggered price decreases in various stocks, making them the top losers in the stock market.
2. Increased selling activity: Stock prices are determined by the forces of demand and supply. Hence, top loser stocks indicate that sellers are dominating these shares and they are actively selling them, resulting in negative price movement.
3. Downtrend in a sector: When there is a downward movement in a sector, the stocks of that sector also move in the downward direction, resulting in a price decrease. This price decrease due to negative momentum in a specific sector turns the stocks of that sector into top losers.
4. Decreased liquidity: A top loser stock indicates that there are a large number of sellers for the stock, and buyers are not willing to buy at the quoted prices. Hence, it tells the traders and investors that there are liquidity issues with the stock.
5. Buying opportunity: A top loser stock can be a great investment opportunity for investors because these stocks are available for reduced prices, which can enhance potential returns. Investors can invest in top losers for the long term if the fundamentals and key indicators of the stock support a long-term view.

Identify top loser stocks with Univest

Univest is an advisory platform that provides recommendations to investors for investing in stocks, futures, options, and commodities. It was started in 2022 with the objective of simplifying the investment journey of investors. Within the span of 2 years, Univest has created a portfolio of over 30 lac customers who receive investment advisory services from the SEBI-registered research analyst of Univest. It has a team of 10+ research analysts who collectively have 75+ years of experience in performing in-depth research and analysis on an investment opportunity before recommending it to Univest users.

• Univest is the leading investment advisory platform in India.
• It provides recommendations to its users for investing in the stock market and commodity market.
• Recommendations of Univest are backed by in-depth research of SEBI-registered research analysts.

Univest users can invest and trade in top loser stocks by using the top loser screener available on the Univest App. The Univest mobile application is available for free on the Google Play store and Apple Store.  Once the user downloads the app and completes the registration process, they can access various AI-based research tools, such as financial calculators, shark portfolios and stock screeners. Within these multiple tools, the top loser screener which is available under the screener option, helps users to see a list of 30 top loser stocks on a market trading day. By looking at these stocks, investors can gauge the sentiment of the market and create an investment strategy for their preferred investment durations.

To access this screener, users must follow the below steps:

1. Download and complete the signup process for the app.
2. After completing the signup process, open the Univest app and locate the screeners section at the bottom of the home screen.
3. Click on the screener option, and an interface with various screeners will be shown.
4. Scroll down on the screen, and you will find the top loser screener under the head of general market screeners.
5. Click on the top loser screener, and you will see a list of 30 top loser stocks of the day.

• Users can access a list of 30 top loser stocks through the top loser screener available in the Univest app.
• The top loser screener helps users to assess the sentiment of the stock market.