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ACC, IRCTC: 4 stocks turn bearish even as Sensex, Nifty scale new highs
Source: Business Standard
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.
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.
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.
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.
First Published: Sep 20 2024 | 1:44 PM IST
