ITC, HUL, Airtel among 5 Nifty stocks to avoid as market bounces back

There 5 Nifty 50 stocks are struggling below the short-term moving average and given downside breakout on the super trend line; hence may see limited gains in case of a pullback, suggest tech charts.

The NSE Nifty 50 index has gained 2 per cent from its recent low of 24,700-odd levels. The recent gains are seen as a pullback as the Nifty had plunged over 1,550 points in preceding six trading sessions. 

Technical chart suggests that the Nifty pullback may continue till the 25,500 to 25,800 levels; provided the index manages to sustain above 25,050 levels.

As the benchmark Nifty bounces back, its constituents too are expected to gain in the near-term. As such, here are 5 such Nifty 50 stocks that may see limited upside owing to a weak set-up on the technical charts at present.

Bajaj Auto

Current Price: Rs 11,900

Upside Capped at: Rs 12,620

Downside Risk: 10.6%

Support: Rs 11,316; Rs 10,900

Bajaj Auto is seen struggling around its 20-DMA (Daily Moving Average) for the last five trading sessions. The key momentum oscillators on the daily and weekly chart are in favour of the bears. CLICK HERE FOR THE CHART

The upside for stock seems capped around Rs 12,620; while on the downside near support for the stock is seen at Rs 11,316. Below which a fall to Rs 10,900 and Rs 10,635 levels seems likely.

Hindustan Unilever (HUL)

Current Price: Rs 2,798

Upside Capped at: Rs 2,995

Downside Risk: 4.5%

Support: Rs 2,790

HUL stock is seen trading with a negative bias for the eighth straight trading session. The stock today has given a downside breakout on the daily scale as it seen trading below the key super trend line support. CLICK HERE FOR THE CHART

Technical chart now suggests that the upside for the stock is likely to be capped around Rs 2,995 levels; with interim resistance seen at Rs 2,912. On the downside, sustained trade below Rs 2,790 can accentuate the fall towards Rs 2,672 levels - its 100-DMA. 

 

ITC

Current Price: Rs 501

Upside Capped at: Rs 532

Downside Risk: 7.6%

Support: Rs 478

ITC too has given a downside breakout on the daily chart. The stock is seen treading along its lower-end of the Bollinger Bands at Rs 501 levels; break and sustained trade below the same can trigger a fall towards Rs 463. Interim support for the stock can be expected around 478. CLICK HERE FOR THE CHART

The upside for the stock seems capped at Rs 532 with interim resistance at Rs 513 levels.

Bharti Airtel

Current Price: Rs 1,699

Upside Capped at: Rs 1,759

Downside Risk: 11.3%

Support: Rs 1,595; Rs 1,570

Bharti Airtel stock is seen struggling around its 20-DMA, above which the key hurdle for the stock stands at Rs 1,759. The near-term bias for the stock is likely to remain tepid as long as the stock trades below Rs 1,759. CLICK HERE FOR THE CHART

On the downside, the stock may slide to Rs 1,507 levels; with interim support seen at Rs 1,595 and Rs 1,570 levels.

Shriram Finance

Current Price: Rs 3,398

Upside Capped at: Rs 3,627

Downside Risk: Rs 13.2%

Support: Rs 3,236

The upside for Shriram Finance stock seems capped at Rs 3,627, while at present the stock is seen struggling around its 20-DMA at Rs 3,465. On the downside, the stock can tumble to Rs 2,950; with interim support expected around Rs 3,236 levels. CLICK HERE FOR THE CHART