Zee Ent, UPL: 5 Nifty 500 stocks flash bearish signals, may fall up to 15%

Technically, stocks inversely proportionate to the benchmark indices' trend are safe to bet during weakness.

The domestic benchmark indices traded sluggish on Friday following a volatile weekly expiry. The BSE Sensex and Nifty 50 were marginally down, but Nifty Bank was seen trading in green. 

While the current broad trend has triggered an optimistic bias, there are a few stocks that are yet to recoup their losing strength. 

This year, well-know names such as UPL and Zee Entertainment Enterprises have plunged close to 9 per cent and 6 per cent, respectively. Crompton Greaves Consumer Electricals, Bharat Forge, and DCM Shriram also have not had a successful year so far.

Here’s the technical outlook for selective bearish stocks in Nifty 500 index:-

UPL Limited (UPL)

Likely target: Rs 575 

Downside potential: 10%

There is a breakdown of the symmetrical triangle on the weekly chart of UPL shares. This breach has triggered a bearish bias for the short-to-medium term scale. 

The counter may fall towards Rs 575 level and the weakness may see aggravated selling pressure. The counter also trades beneath the highly acknowledge moving average of 200-DMA. Immediate hurdle falls at Rs 700 and Rs 750 levels.  CLICK HERE FOR THE CHART

Zee Entertainment Enterprises Ltd (ZEEL)

Likely target: Rs 150 (if breaks 52-week low)

Downside potential: 15%

Shares of Zee Entertainment Enterprises trade with a negative bias, as per the daily and weekly chart. The trend is fragile and continues to slope downward. The stock is currently trading near its 52-week low of Rs 176.55 levels. 

If the stock breaks its 52-week support, it may plunge more lower in the Bear grip. The next rally could see the counter reaching Rs 150 levels. CLICK HERE FOR THE CHART

Bharat Forge Ltd (BHARATFORG)

Likely target: Rs 670 to Rs 650 ( breaks Rs 740)

Downside potential: 10%

Bharat Forge shares have breached the most significant support of Rs 825, as per the weekly chart. This level was the breakout point in November last year, and its inability to hold this support reveals weakness and the build of a negative bias. 

If the stock tumbles beneath the support of Rs 740, thebias may enter medium-term bearishness, with the downside rally for Rs 670 to Rs 650 range. CLICK HERE FOR THE CHART

Crompton Greaves Consumer Electricals Ltd (CROMPTON)

Outlook: Trend is fragile 

The breakdown of “Death Cross” has dismantled the positive bias for the shares of Crompton Greaves Consumer Electricals, as per the daily chart. The bearish trend has engulfed the constructive bias and unless the counter trades of Rs 280, the trend is likely to see domination of the bears. 

The gradual decline may see the price action headed in the direction of Rs 200 levels. The candlestick formations, especially after the recent gap down, seem to display activities in bears favour.  CLICK HERE FOR THE CHART

DCM Shriram Limited (DCMSHRIRAM)

Outlook: Trend looks dicey below Rs 900 level

The bigger outlook of the DCM Shriram points to a breach of a key support. The stock trades beneath Rs 900, which was the major level bolstering the upward bias till November last year. 

While the recent sessions denote some form of reversal, but the trend has not been making efforts to pull back crucial indicators like the Moving Average Convergence Divergence (MACD) in its bullish line. Because of this weakness, the counter may be sinking back to Rs 750 levels. CLICK HERE FOR THE CHART