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.
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
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
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
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
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
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
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.
First Published: Sep 04 2024 | 1:53 PM IST
