 "These 5 BSE A-group stocks look weak on charts; can slide up to 17%")
On Wednesday, the Sensex and the Nifty dropped nearly 1 per cent in intra-day deals amid weak cues from global peers. Market participants were expecting a price correction following a record 14-day rally in the NSE Nifty 50 index.
The Nifty had surged 1,141 points or 4.7 per cent in the last 14 straight trading sessions - its longest winning streak ever. In the process, the Nifty 50 index hit a fresh life-time high at 25,333.60 and the Sensex registered a new summit at 82,725.28 on September 02, 2024.
Will the market continue to fall further, or recoup losses and continue to rally at higher levels from here on? Read the outlook on the BSE Sensex and the NSE Nifty 50 here.
Meanwhile, here are five stocks which look weak on the charts with one common technical factor i.e. a 'Death Cross' pattern. Technically the term 'Death Cross' is used when the stock/ underlying index's short-term moving average (50-DMA) falls below the long-term (200-DMA).
Here's a trading guide for these 5 stocks:
Trident
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Current Price: Rs 37
Downside Risk: 14.3%
Support: Rs 36.35; Rs 35.75
Resistance: Rs 37.80; Rs 38.05; Rs 39.10
Trident stock has been languishing below all its key moving averages for nearly a month now. Today, the stock is seen testing resistance around its 20-DMA at Rs 37.45. Above which hurdles for the stock are placed at Rs 37.80, Rs 38.05 and Rs 39.10 in the form of 50-, 100- and 200-DMAs. CLICK HERE FOR THE CHART
On the downside, near support for Trident stock is seen at Rs 36.35 and Rs 35.75; break and sustained trade below the same can trigger a fall up to Rs 31.70, with interim support seen at Rs 33.40.
NMDC Steel
Current Price: Rs 54.90
Downside Risk: 10.4%
Support: Rs 53; Rs 51
Resistance: Rs 56.33; Rs 56.93; Rs 58.90
NMDC Steel saw formation of a 'Death Cross' just three trading sessions ago. The 50-DMA now stands at Rs 56.33, while the 200-DMA at Rs 56.93. Today, the stock is seen attempting a pullback over its 20-DMA which stands at Rs 54.60. CLICK HERE FOR THE CHART
The near-term bias is likely to remain negative as long as the stock trades below the 200-DMA; above which stiff resistance for the stock exists at Rs 58.90 - its 20-WMA (Weekly Moving Average) - an average the stock has failed to conquer since late May 2024.
On the downside, the stock seems headed towards Rs 49.20 levels; with interim support seen at Rs 53 and Rs 51.
Network18 Media & Investments
Current Price: Rs 91.55
Downside Risk: 16.7%
Support: Rs 90; Rs 87.30; Rs 86.50
Resistance: Rs 92.75; Rs 96.40; Rs 101.80
Network18 stock has plunged over 14 per cent from its high of Rs 106 hit on August 29. In doing so, the stock has once again slipped below its 20- and 200-DMA, which stand at Rs 96.40 and Rs 92.75, respectively. The stock is now within striking distance of testing support around its 50-DMA at Rs 90. CLICK HERE FOR THE CHART
Break and sustained trade below the same can accentuate the downfall, with a likely test of Rs 76.30 levels. Interim support for the stock can be expected around Rs 87.30 and Rs 86.50 levels. The overall bias for the stock is likely to remain negative as long as the stock trades below Rs 101.80 levels.
Restaurant Brands Asia
Current Price: Rs 107.20
Downside Risk: 8%
Support: Rs 106; Rs 104.50; Rs 102.50
Resistance: Rs 109; Rs 112.50
Restaurant Brands Asia stock is seen trading on a negative note for the fourth straight day. The stock has shed 7.5 per cent from a high of Rs 115.71 hit on August 28. In the process, the stock is seen quoting below its 50- and 200-DMAs, which stand at Rs 108.80 and Rs 109, respectively. CLICK HERE FOR THE CHART
The stock is now within striking distance of its 100-DMA at Rs 106 - a level the stock has defended on a daily closing basis since early July 2024. Similarly, on the weekly scale, the stock has managed to sustain above its 20-WMA since early June. The 20-WMA stands at Rs 107.40.
Given negative crossover on key momentum oscillators, the stock may face some downward pressure in the near-term. Break and sustained trade below the above mentioned key support levels, can trigger a fall towards Rs 98.70. Interim support for Restaurant Brands Asia stock can be expected around Rs 104.50 and Rs 102.50 levels. The overall bias for the stock is likely to remain tepid as long as it remains below Rs 112.50.
SBFC Finance
Current Price: Rs 84.05
Downside Risk: 10.7%
Support: Rs 83; 80
Resistance: Rs 85.50; Rs 88
SBFC Finance stock is finding it difficult to sustain above its 200-DMA despite multiple attempts since mid-June. Even today, the stock momentarily crossed the 200-DMA which stands at Rs 85.50. The 200-DMA coincides with the 50-WMA. That apart, resistance for the stock is seen at Rs 88 levels. CLICK HERE FOR THE CHART
On the downside, near support for the stock exists at Rs 83; break and sustained trade below the same can trigger a fall towards Rs 75.10; with interim support seen at Rs 80 levels.