Zee, Paytm top Nifty 500 losers so far in 2024; will the fall continue?

As many as 10 stocks within the Nifty 500 space have declined over 20 per cent so far in 2024. These are the key levels to watch out, suggest charts.

After bumper gains in the year 2023, Indian equity market seems to have started the calendar year 2024 on a rather cautious note. The NSE benchmark Nifty 50 index has gained 2 per cent so far this year, while the broader Nifty 500 index has advanced around 4 per cent.

Among the outperformers, so far, as of February 27, Tuesday, Oracle Financial Services up 86 per cent was the top Nifty 500 gainer. MRPL, NBCC (India), Infibeam Avenues, Tata Investment Corporation and Sobha were the other major movers - up 64 - 77 per cent.

On the other hand, 10 stocks within the Nifty 500 space have declined over 20 per cent each. Zee Entertainment with a 37 per cent loss is the major laggard followed by Paytm (down 33 per cent), RHI Magnesita India, AU Small Finance Bank, Deepak Fertilisers, Vedant Fashions, Syrma SGS Technology, Craftsman Automation, Sharda Cropchem and Prince Pipes.

Will these early laggards continue to drift lower as the year progresses or will there be a trend reversal? Here's what the charts suggest.

Zee Entertainment

Current Price: Rs 167

Bias: Range-bound

Support: Rs 155

Resistance: Rs 180; Rs 210

Post the sharp 32-per cent single day fall in late January, Zee has been trading with a negative bias, below its short-term moving average (20-DMA) on the daily scale. Key momentum oscillators are in neutral mode, indicating lack of strength for either buyers of sellers.

The daily chart suggests that the stock is likely to consolidate in the trading band of Rs 155 - 180. Fresh buying interest at the counter can be expected only on break and sustained trade above Rs 210 levels. CLICK HERE FOR THE CHART

Paytm

Current Price: Rs 406

Support: Rs 360; Rs 350

Resistance: Rs 440

Upside Potential: 33%

Paytm has been in the thick of action off late. Earlier this month, the stock hit fresh all-time low at Rs 318, and was down a whopping 58 per cent in February alone. The stock, thereafter, bounced by to Rs 450-odd levels - up 41 per cent from its low.

After testing resistance around its super trend line which exists at Rs 452, the stock has pulled back to Rs 400-odd levels.

The price-to-moving averages action clearly suggests that the stock is trading with a weak bias. On the downside, the stock may seek to find support around Rs 350 - Rs 360 odd levels. 

On the upside, sustained trade above Rs 440 may trigger retracement of the earlier decline. The 38 per cent retracement of the fall, suggests an upside target of Rs 486, whereas 50 per cent retracement could see the stock jump to Rs 540 levels. CLICK HERE FOR THE CHART

AU Small Finance Bank

Current Price: Rs 583

Resistance: Rs 600

Downside Potential: 9%

AU Small Finance Bank is likely to trade with a negative bias as long as the stock trades below its 20-DMA, which stands at Rs 600. On the downside, the stock can test Rs 530-odd levels. Key momentum oscillators, both on the daily and weekly scale are in favour of the bears. CLICK HERE FOR THE CHART

Deepak Fertilisers

Current Price: Rs 515

Resistance: Rs 520; Rs 555

Support: Rs 480

Downside Potential: 18%

After hitting a low at Rs 483, Deepak Fertlisers has bounced back and presently seen testing resistance around its 20-DMA at Rs 520. The near-term bias is likely to remain negative as long as the stock trades below the 20-DMA. Breakout above the same can trigger a rise to Rs 555.

Whereas, given the fact that key momentum oscillators are exhibiting a negative bias on the daily and weekly scale, the stock may weaken once again. On the downside, the stock may seek support around its recent low at Rs 480. Below which, sustained fall to Rs 420-odd levels seems likely. CLICK HERE FOR THE CHART

Sharda Cropchem

Current Price: Rs 352

Support: Rs 348

Sharda Cropchem is seen testing its crucial support around Rs 348 on the long-term chart. Break and sustained trade below Rs 348, can augur fresh trouble for the stock.

Even as key momentum oscillators are seen in oversold zone, the Directional Index (DI) continues to remain clearly in favour of the bears on the daily and weekly scale. Thus, the overall bias for the stock is likely to remain negative as long as the stock trades below its 20-DMA at Rs 373. CLICK HERE FOR THE CHART