ACC, IRCTC: 4 stocks turn bearish even as Sensex, Nifty scale new highs

Technical chart suggests that ACC, IRCTC, PND and Aarti Industries could slide up to 28% from present levels owing to formation of 'Death Cross' on the daily chart; a long-term bearish indicator.

The BSE Sensex and the NSE Nifty 50 index were seen trading on a buoyant note at record high levels in trades on Friday, amid the global market cheer owing to a bumper US Fed rate cut. The US Federal Reserve on Wednesday night announced a 50 basis points cut in interest rates - a first since March 2020.

At 13:10 hrs, the BSE Sensex was up 1.5 per cent or 1,235 points at 84,420 levels, having registered a fresh summit at 84,508. The NSE Nifty 50 index has rallied 1.4 per cent to 25,780. Even the broader indices, the Nifty MidCap and SmallCap were up 1 per cent and 0.9 per cent, respectively.

 

The market breadth too was fairly positive with 1,850 stocks advancing on the NSE as against 730-odd declining shares.

Despite, the overall bullish bias in the market, here are 4 stocks that have signalled a 'Death Cross' on the daily chart today. A 'Death Cross' a technical chart pattern wherein the shorter-term moving average drops below its long-term moving average; i.e. the 50-DMA (Daily Moving Average) falls below the 200-DMA. In general, 'Death Cross' patter signals a likely bearish trend ahead.

Here's a detailed analysis on each of these 4 stocks:

ACC

Current Price: Rs 2,440

Downside Risk: 27.5%

Support: Rs 2,412; Rs 2,350

Resistance: Rs 2,457; Rs 2,510

ACC stock is seeing the formation of 'Death Cross' after a year the stock has seen 'Golden Cross' breakout in September 2023. 'Golden Cross' is when the 50-DMA breaks above the 200-DMA. ACC post 'Golden Cross' breakout saw a bull run of 43.5 per cent at its peak of Rs 2,844 in July 2024.

At present levels, ACC has declined over 14 per cent from its peak. On the daily chart, the stock is seen testing support at its 20-DMA at Rs 2,412. The stock is trading below its 50-, 100- and 200-DMAs placed at Rs 2,457, Rs 2,510 and Rs 2,468 levels. The near-term bias for the stock is likely to remain tepid as long as the stock remains below Rs 2,510. CLICK HERE FOR THE CHART

On the downside, the super trend line support on the daily scale at Rs 2,350 is likely to act as a crucial support. Break and sustained trade below the same can trigger a fall towards Rs 2,070 levels; with a dip to Rs 1,770 not ruled out. Interim support for the stock can be expected around Rs 2,265 and Rs 2,170 levels.

IRCTC

Current Price: Rs 893

Downside Risk: 24.6%

Support: Rs 775

Resistance: Rs 950; Rs 985

IRCTC too is seeing formation of a 'Death Cross' pattern after more than one year. The stock is trading below all its key moving averages, with immediate resistance seen at Rs 896. However, given the recent steep fall at the counter, IRCTC may look to recoup some of its losses.

On its way up, IRCTC stock can bounce back to Rs 985; with interim resistance seen at Rs 950. On the downside, the stock is likely to extend the fall towards its 200-WMA (Weekly Moving Average), which stands at Rs 673; with interim support likely around Rs 775. CLICK HERE FOR THE CHART

PNB

Current Price: Rs 108

Downside Risk: 21.8%

Support: Rs 96; Rs 90

Resistance: Rs 115; Rs 120

PNB stock is seeing a 'Death Cross’ after two years. At present, the stock is seen attempting to seek support around its 200-MMA (Monthly Moving Average) - a key average it conquered in January this year. The 200-MMA support stands at Rs 107. 

Break and sustained trade below the same can trigger a fall to Rs 84.50 levels; interim support for the stock can be expected around Rs 96 and Rs 90 levels. The overall bias at the PNB counter is likely to remain negative as long as the stock remains below Rs 115 - Rs 120 resistance zone. CLICK HERE FOR THE CHART

Aarti Industries

Current Price: Rs 574

Downside Risk: 19%

Support: Rs 545; Rs 520

Resistance: Rs 600; Rs 660

Aarti Industries stock has witnessed a massive 26 per cent fall in the last one month, and now the 'Death Cross'. Given the oversold conditions, a pullback at the counter seems imminent. Having said that, the upside is likely to be capped around Rs 660 levels; with near resistance seen at Rs 600.

On the downside, the stock seems on course to test Rs 465 levels; with interim support seen at Rs 545 and Rs 520 levels. CLICK HERE FOR THE CHART