Stuck with ITC, BPCL, Coal India in your portfolio? Track these levels

From its recent closing low of 10,805 levels hit on September 24, 2020, the Nifty 50 index has rallied nearly 10 per cent till October 8 with most of the gains coming from banking and information technology (IT) counters. IndusInd Bank and HDFC have been the top gainers between September 24 and October 7 (closing basis) – rallying 26 per cent and 19 per cent respectively, ACE Equity data show. TCS, Adani Ports & Special Economic Zone, Tata Motors, ICICI Bank and HDFC Bank have been some of the other gainers.

On the other hand, BPCL (down over 9 per cent) and Coal India (down 1 per cent) are the only two stocks that have given a negative return during this period. Some of the other prominent names such as Bharti Airtel, ITC, Larsen & Toubro (L&T), Indian Oil Corporation (IOC), HCL Technologies, Bajaj Auto, Hindustan Unilever (HUL) and Reliance Industries (RIL) though have gained ground, but have returned less than the rise in the Nifty50 index, data show.

Here are the levels for the key underperformers during the recent rally you need to keep a tab on.

Bharat Petroleum Corporation Ltd (BPCL): The counter has breached the significant support of Rs 370 recently, which has resulted in a bearish formation on the charts. The trend looks negative for now and any reversal will see accelerated selling pressure. Till the counter trades below the immediate resistance of Rs 360, it can slip to Rs 320 and even Rs 300 levels in the days ahead. The Relative Strength Index (RSI) has entered the oversold condition with price not showing any recovery. CLICK HERE FOR THE CHART

Coal India Ltd (COALINDIA): A “Descending Triangle Pattern” on the weekly chart clearly suggests a downward trend. This reflects a rally towards Rs 95 and Rs 85 levels. On the higher side, a reversal towards Rs 120 may see an addition in short positions. The overall trend is bearish with upside capped in the range of Rs 120 to Rs 125 levels. CLICK HERE FOR THE CHART

Bharti Airtel Ltd (BHARTIARTL):  The medium-to-long term outlook seems very promising for this counter with the formation of a “Golden Cross” on the weekly chart. However, the price is not building enough strength that can see the emergence of follow-up buying. At current levels, the price is revolving around a 100-weekly moving average (WMA) placed at Rs 411 levels. If it fails to show any positive sign on the charts in the next couple of sessions, then a downside rally may see the counter hit Rs 378 levels, which also is its 200-WMA. CLICK HERE FOR THE CHART

ITC Ltd (ITC): This counter has failed to conquer the 50-WMA in recent times, placed at Rs 200 levels. A breach of Rs 180 has dismantled the upside bias. Going forward, if ITC fails to defend the support of Rs 164, then may see a fall towards Rs 150 and even Rs 142 levels. CLICK HERE FOR THE CHART