Coal India, Tata Elxsi among 4 stocks to be wary of as market bounces back

Coal India, Tata Elxsi, Schaeffler and ELGI Equipments have witnessed a 'Death Cross' pattern on the daily chart; hence are likely to face downward pressure going ahead.

Equity benchmark indices have logged strong gains in the last two trading sessions, thus bouncing back from oversold levels. The NSE Nifty 50 index has rallied over 4.5 per cent or nearly 1,100 points in the last two trading sessions, and was seen quoting above its short-term (20-DMA - Daily Moving Average) for the first time since October 1, 2024.  Similarly, the BSE Sensex has rallied over 3,000 points in the last two trading sessions. Positive global markets and a landslide victory for BJP-led Mahayuti alliance in Maharashtra state elections were the key triggers for the market rebound.  Meanwhile, even as stocks bounce back from lower levels here are 4 stocks that one should be wary of given the weak set-up on the charts. Coal India, ELGI Equipment, Schaeffler and Tata Elxsi have recently confirmed a 'Death Cross' pattern on the daily chart. Thus, suggesting these stocks could see further weakness going ahead, and in case of a pull-back the upside may be capped.  A 'Death Cross' pattern is identified when the medium-term (50-DMA) falls below the long-term (200-DMA) on the daily scale.  Here's how these 4 stocks are placed on the charts:  Coal India  Current Price: Rs 419  Downside Risk: 20.8%  Support: Rs 365  Resistance: Rs 427; Rs 439; Rs 464  Coal India stock has gained merely 1 per cent in an otherwise strong market. The stock is seen facing resistance at its 20-DMA, which stands at Rs 427. Chart shows that the near-term bias for the stock is expected to remain negative as long as the stock trades below Rs 439. The longer-term bias too is expected to remain tepid till the time stock sustains below the 200-DMA, which stands at Rs 464. CLICK HERE FOR THE CHART    On the downside, the stock may seek support around its 20-MMA (Monthly Moving Average), which stands at Rs 365 or drift lower towards the super trend line support at Rs 332.  Tata Elxsi  Current Price: Rs 6,631  Downside Risk: 5%  Support: Rs 6,500  Resistance: Rs 6,820; Rs 7,180  The bias for Tata Elxsi is likely to remain negative as long as the stock trades below Rs 7,180 levels. Near resistance for the stock is visible at Rs 6,820. While, the stock seems to be bouncing back from oversold zone, break and sustained trade below Rs 6,500 levels and lead to a fall towards re-test of Rs 6,300 levels. CLICK HERE FOR THE CHART  ELGI Equipments  Current Price: Rs 631  Downside Risk: 14.4%  Support: Rs 610  Resistance: Rs 655; Rs 669  ELGI Equipments stock has soared over 13 per cent in Monday's trading session. While, the stock is seen trading above its 20-DMA, which now stands at Rs 610. The overall bias is likely to remain cautious as long as the stock trades below Rs 669. Interim resistance for the stock can be expected around Rs 655 levels.  On the flip side, failure to sustain above the 20-DMA can trigger a fall towards Rs 540 levels. CLICK HERE FOR THE CHART  Schaeffler India  Current Price: Rs 3,390  Downside Risk: 17.4%  Support: Rs 3,310  Resistance: Rs 3,577; Rs 3,700  Schaeffler India stock too is seen testing resistance around its 20-DMA on the daily scale at Rs 3,577 levels. The stock has near support at Rs 3,310; below which a sharp fall to Rs 2,800 levels seems possible. Meanwhile, owing to the 'Death Cross' pattern the bias at the counter is likely to remain subdued as long as the stock trades below Rs 3,700 levels. CLICK HERE FOR THE CHART