RVNL, TVS Motor see Death Cross after 3 yrs; HFCL flags warning on chart

Technically, a Death Cross pattern implies bearish implications; Chart shows that RVNL, TVS Motor and HFCL could slide up to 25 per cent from present levels.

Rail Vikas Nigam Limited (RVNL), HFCL and TVS Motor are the three stocks to witness formation of 'Death Cross' pattern on the daily charts on Wednesday.  Technically, a 'Death Cross' pattern is a bearish formation, which is observed after the shorter-term 50-day Daily Moving Average (DMA) falls below the 200-DMA of the particular stock or index. In general, a 'Death Cross' pattern indicates bearish implications for the stock.  RVNL stock has plunged up to 40 per cent in the last five months, from levels of Rs 596 at the end of August 2024 to a low of Rs 356 this month. Whereas, HFCL and TVS Motor have tumbled by 37.4 per cent and 23.6 per cent in the last four trading sessions. The sustained fall in these shares prices has led the shorter-term moving average dip below the long-term average, show charts.    Against this background, here's an outlook on these 3 stocks as per the technical charts  RVNL  Current Price: Rs 377  Downside Risk: 25.7%  Support: Rs 360; Rs 315  Resistance: Rs 419; Rs 475  RVNL stock has witnessed the formation of 'Death Cross' on the daily chart after 28 long months. The stock last traded with a similar development in September 2022. Post the formation of 'Golden Cross' thereafter the stock rallied 1935 per cent or 20-fold to a high of Rs 635 in July 2024. CLICK HERE FOR THE CHART  At present, RVNL is seen trading with a negative bias on the daily and weekly charts, albeit in oversold territory. Chart shows that the near-term bias for the stock is expected to remain tepid as long as the stock remains below Rs 419; with any upside beyond that capped around Rs 475 levels.  On the downside, the stock seems on course to test support at its 20-MMA (Monthly Moving Average) - a long-term average the stock has held since November 2020. The 20-MMA support for RVNL stands at Rs 315; below which a slide towards Rs 280 levels cannot be ruled out. Near support for the stock is seen at Rs 360.    TVS Motor  Current Price: Rs 2,245  Downside Risk: 12.5%  Support: Rs 2,170; Rs 2,088  Resistance: Rs 2,400; Rs 2,550  TVS Motor too has seen formation of 'Death Cross' on the daily chart after more than 3 years, i.e. post November 2021. Thereafter, the stock from levels of Rs 712 zoomed to a high of Rs 2,958 in September 2024 - up 315 per cent. CLICK HERE FOR THE CHART  Amid the recent fall, the stock now seems on course to test the 20-MMA support at Rs 2,088; below which a slide towards Rs 1,965 seems likely. In case of a pullback, the TVS Motor stock is expected to counter stiff resistance around Rs 2,400 and Rs 2,550 levels; while near support for the stock is seen at Rs 2,170.  HFCL  Current Price: Rs 99.80  Downside Risk: 24.9%  Support: Rs 100; Rs 94  Resistance: Rs 110; Rs 125  HFCL stock has witnessed a 'Death Cross' pattern after September 2023 and is seen trading with a negative bias across time-frames. The stock seems to be testing support at its 20-MMA at Rs 100-mark. CLICK HERE FOR THE CHART  Given the negative set-up on the chart, the stock could break the same and slide towards the next major support, which stands at Rs 75; interim support for the stock exists at Rs 94 - i.e. where the 100-WMA stands. In case of a pullback, HFCL stock is expected to face resistance around Rs 110 and Rs 125 levels.