Market Update: Sensex and Nifty Experience a Dip Amid Global Weakness
On Wednesday, both the Sensex and Nifty indices experienced a decline of nearly 1% during intra-day trading, influenced by unfavorable signals from international markets. Investors were anticipating a price correction after an impressive 14-day rally in the NSE Nifty 50 index.
The Nifty had soared by 1,141 points or approximately 4.7% over the previous two weeks—marking its longest winning streak to date. This surge propelled the Nifty 50 index to an all-time high of 25,333.60, while the Sensex reached a new peak at 82,725.28 on September 2, 2024.
Identifying Weak Stocks: The ‘Death Cross’ Indicator
In light of recent market movements, we highlight five stocks that are currently showing weakness on their charts due to a common technical signal known as the ‘Death Cross.’ This term refers to when a stock’s short-term moving average (50-DMA) falls below its long-term moving average (200-DMA).
Trading Insights for Five Underperforming Stocks
- Trident
– Current Price: Rs 37
– Potential Downside: Approximately 14.3%
– Support Levels: Rs 36.35; Rs 35.75
– Resistance Levels: Rs 37.80; Rs 38.05; Rs39.10
Trident’s stock has been struggling below all significant moving averages for almost a month now and is currently testing resistance near its short-term average at around Rs37.45 today. If it surpasses this level, further resistance can be expected at Rs37.80 (50-DMA), followed by levels at Rs38 and Rs39.
Conversely, if Trident breaks below support levels of Rs36.35 or even further down toRs35 .75 , it could see declines towardsRs31 .70 , with interim support anticipated aroundRs33 .40 .
- NMDC Steel
– Current Price: Rs54 .90
– Potential Downside: About10 .4 %
– Support Levels:Rs53 ;Rs51
– Resistance Levels:Rs56 .33 ;Rs56 .93 ;Rs58 .90
Just three trading sessions ago,NMDC Steel formed a ’Death Cross.’ Currently,the stock is attempting recovery above its short-term average which stands at about54 .60 .
As long as NMDC trades under its200-DMA , which is positioned at56 .93 , negative sentiment may persist with potential declines towards49 .20 if it fails to hold above key supports.
3.Network18 Media & Investments
- Current Price: ₹91.55
- Potential Downside: 16.7%
- Support Levels: ₹90; ₹87.30; ₹86.50
- Resistance Levels: ₹92.75; ₹96.40; ₹101.80
Network18 has seen over14 % drop from its peak of₹106 reached on August29 . The stock has fallen beneath both20-DMA and200-DMA averages which are now positioned respectively at₹96 .40 and₹92 .75 .
If Network18 breaches support near₹90 , it could lead to further declines potentially reaching levels around₹76 .30 with interim supports identified near87 .30 and86 .50 .
4.Restaurant Brands Asia
- Current Price: ₹107.20
- Potential Downside: Approximately8 %
- Support Levels: ₹106; ₹104.50 ;₹102 .50
- Resistance Levels: ¥109 ;¥112 .5
Restaurant Brands Asia’s shares have declined for four consecutive days following losses totaling7 .5 % since hitting highs of115 .71 on August28 .
Currently trading below both key moving averages(50-and200-DMAs),the stock approaches critical support around100 DMA located just above106 ,which must hold firm against downward pressure in order not trigger drops toward98 .70 with additional supports seen nearer104 .5and102 .5levels.
5.SBFC Finance
–Current Price: ¥84.05
–Potential Downside: ~10 %.7
–Support: ¥83 ;¥80
–Resistance: ¥85.5 ;¥88
Despite several attempts since mid-June,SBFc Finance struggles maintaining position above200 DMA situated roughly85 ,with resistance also noted nearby88 .
Should SBFC break through immediate supports found close83 or lower down towards80,it risks falling back toward75*,with interim holds expected along these lines too.
the current market landscape indicates caution among investors as several stocks exhibit bearish patterns characterized by technical indicators like ‘Death Cross.’ Monitoring these trends will be crucial for making informed investment decisions going forward.
Student Of Government Collage Of Engineering and part time journalist.Follow for topics such as politics,new technology,gaming etc..
