Nykaa, Finolex, Exide see Death Cross on chart; stocks can fall up to 20%

The 'Death Cross' term is used when the stock's 50-DMA falls below 200-DMA; which in general leads to a tepid trend thereafter.

Five stocks among the Nifty 500 on Monday witnessed a 'Death Cross' pattern on the daily chart as the benchmark indices drifted lower amid persistent selling pressure. The BSE Sensex was down over 500 points at 81,600, while the Nifty 50 index slipped 130 points to 24,650 levels in intra-day deals on Monday.  Technically, the term 'Death Cross' is used when short-term moving average dips below the long-term moving average on the charts. Typically, the 50-DMA (Daily Moving Average) of the stock or index falls below the 200-DMA. In general, this also signals a likely change in trend from bullish to bearish.  On Monday - Nykaa, Exide Industries, Finolex Industries, KNR Construction and Signature Global witnessed the 'Death Cross' pattern on the daily scale. Here's how the stocks are placed on the charts at present.  Nykaa  Current Price: Rs 171  Downside Risk: 19.3%  Support: Rs 161; Rs 145  Resistance: Rs 179; Rs 205  Nykaa stock has been witnessing a downtrend for the last four months, with the share price down 29 per cent from the highs in late August. At present, the stock is seen attempting to claw back above the short-term moving average - the 20-DMA, which stands at Rs 170. CLICK HERE FOR THE CHART  Given the 'Death Cross' pattern, the stock is expected to witness a tepid trend in the near-term, with upside likely to be capped around Rs 205, with near resistance at Rs 179. On the downside, key support for the stock exists at Rs 161 - in the form of 100-WMA (Weekly Moving Average). Break and sustained trade below the same can trigger a fall towards Rs 138, with interim support expected around Rs 145.    Exide Industries  Current Price: Rs 453  Downside Risk: 17.7%  Support: Rs 436; Rs 416  Resistance: Rs 479; Rs 532  Exide Industries stock is seen struggling around the 200-DMA for the last three weeks. The current chart set-up suggests that the overall bias is likely to remain 'Sell on Rise' as long as the stock trades below Rs 532. Near key hurdle for the stock stands at Rs 479 - its 200-DMA. CLICK HERE FOR THE CHART  On the downside, the stock near support for the stock is visible at Rs 436 and Rs 416; below which, a slide towards Rs 373 seems likely.  Finolex Industries  Current Price: Rs 263  Downside Risk: 20.2%  Support: Rs 252; Rs 246  Resistance: Rs 281  The short-term trend for Finolex Industries is likely to remain negative as long as the stock trades below Rs 281. On the downside, near support for the stock exists at Rs 252 and Rs 246 levels. Break and sustained trade below the same is likely to trigger a fall to Rs 210. CLICK HERE FOR THE CHART    Signature Global  Current Price: Rs 1,269  Downside Risk: 13.3%  Support: Rs 1,250  Resistance: Rs 1,365; Rs 1,387  Signature Global is likely to trade with a negative bias in the near-term as long as the stock remains below Rs 1,365; above which immediate resistance is seen at Rs 1,387 - the 200-DMA. CLICK HERE FOR THE CHART  On the downside, the stock is seen seeking support around its recent lows at Rs 1,250 levels. Break and sustained trade below the same can trigger a dip towards Rs 1,100 levels.  KNR Constructions  Current Price: Rs 349  Downside Risk: 10.3%  Support: Rs 331  Resistance: Rs 373  Despite the 'Death Cross' pattern, the price-to-moving averages action for KNR Constructions is neutral. As the stock is seen trading above key moving averages, but select long-term averages are higher than the shorter-term averages. CLICK HERE FOR THE CHART  The weekly chart shows presence for key resistance for the stock at Rs 373. On the downside, the 100-DMA at Rs 331 shall act as an immediate support. Break and sustained trade below the same can trigger a dip towards the 200-DMA at Rs 313.