Amazon vs Future Grp: Tech charts show 20% downside in Future Group stocks

Future Group stocks were locked in their respective lower circuit bands, triggering bearish moves in the counters

In a major win for Amazon, the Supreme Court on Friday allowed an appeal filed by the e-commerce giant against a Delhi High Court order staying attachment of properties of Future Group companies and Kishore Biyani in relation to the Rs 24,713-crore Future-Reliance deal. 

Amazon and Future had been locked in legal battles over the deal, with the US-based firm accusing the Future Group of violating pre-existing contracts when it sold its assets to rival Reliance Industries. Future Group, however, has denied any wrongdoing. READ HERE

Following this development, shares of Future Group companies tumbled up to 16 per cent while Reliance Industries shares slid 2 per cent. READ HERE

Will the bearishness in their stock prices continue? Here's what tech charts are signalling:

Reliance Industries Ltd (RELIANCE)

Outlook: Trading in a tight range of Rs 2,180 to Rs 2,030

The overall outlook for RIL displays an upward bias as the Relative Strength Index (RSI) has managed to cross the obstacle of 54 value, according to the daily chart. However, the stock faces resistance in the Rs 2,180 - Rs 2,150 range. Unless this hurdle is conquered, the upside bias may quickly dismantle on any negative development. That said, if the stock continues to defend the support of the 200-days moving average (DMA) on the closing basis, which is currently placed at Rs 2,030 levels, the weakness may stay limited. CLICK HERE FOR THE CHART

Future Retail Limited (FRETAIL)

Likely target: Rs 48 to 46

Downside potential: 7.50% to 11.50%

Since mid-July, the stock has made several attempts to cross 200-DMA, placed around Rs 72 mark, but failed to do so amid lack of support from volumes and technical indicators like RSI and Moving Average Convergence Divergence (MACD). Today, the stock hit 10 per cent lower circuit limit, breaching 100-DMA, suggesting bearish sentiment for coming sessions. The stock may see a downside towards Rs 48 and 46 levels, as per the daily chart. CLICK HERE FOR THE CHART

Future Consumer Limited (FCONSUMER)

Likely target: Below Rs 5.85

Downside potential: 20%

In July this year, the stock broke out of nearly two years' weakness when it conquered the 200-DMA actively. However, today's price action has pushed the stock back below the 200-DMA, placed at Rs 8, suggesting a major decline in the coming days. The bearish sentiment may lead to a new 52-weeks low of Rs 5.85. Furthermore, the MACD has also broken the zero line, indicating a negative direction ahead. The stock faces resistance at Rs 9, as per the daily chart. CLICK HERE FOR THE CHART

Future Lifestyle Fashions Limited (FLFL)

Likely target: Rs 54 and Rs 48

Downside potential: 10% and 22%

Similar to Future Consumer, this stock managed to cross its 200-DMA (placed at Rs 79.65) for the first time since 2019, in July this year. However, it failed to continue the upside bias. With the recent development, the price has decisively breached its 200-DMA and is locked in the10 per cent lower circuit. The MACD has also slipped below the zero line. These developments suggest a negative downside towards Rs 54 and Rs 48 levels, as per the daily chart. Further, unless the stock surpasses its 200-DMA, placed at Rs 74, the upside bias is likely to see elevated selling pressure. CLICK HERE FOR THE CHART

Future Enterprises Limited (FEL)

Outlook: Immediate support comes at Rs 8.50

As the counter failed to overcome the resistance range of Rs 14 to Rs 12.50, the current momentum is witnessing strong selling pressure. The next support comes at Rs 8.50, and if that gets broken, the downside may see Rs 7 levels, as per the daily chart. MACD is trading below the zero line, signalling a weaker trend. CLICK HERE FOR THE CHART

Future Supply Chain Solutions Limited (FSC)

Likely target: Rs 64 and Rs 60

Downside potential: 12% and 18%

The stock is locked in the 10 per cent lower circuit band and is headed towards the oversold territory of RSI. Unless decisive stability emerges in the oversold territory, the price is likely to see bearish sentiment towards Rs 64 and Rs 60 levels, as per the daily chart. CLICK HERE FOR THE CHART