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The domestic market breached a key moving with a gap-down session average on Wednesday, something that triggered a negative sentiment when gauged on the technical charts. The build-up of the reversal sentiment further received acceleration as both indices opened Thursday’s session on muted terms, a day of weekly expiry.
Both the key indices, BSE Sensex and Nifty 50 are up 7 per cent since the start of this year. Several stocks have rallied during that course, additing to the optimistic sentiment. Now, selective stocks have been experiencing weakened strength and lag behind the current bull-run.
Here’s the technical outlook of stocks breaching 200-SMA:-
Hindustan Unilever Ltd (HINDUNILVR)
Outlook: Break below Rs 2,520 could hit new 52-week low
The stock has recently surpassed the 50-day simple moving average (SMA) placed at Rs 2650, with decent volume that led the counter towards the 200-SMA support. However, the current dip under the same crucial average suggests that the buyers are falling short in holding the bullish trend. Furthermore, a close below the support of Rs 2,520 could take this counter to Rs 2,300-level, hitting fresh 52-week low, as per the daily chart. CLICK HERE FOR THE CHART
Avenue Supermarts Limited (DMART)
Outlook: Moving towards Rs 3,600 & Rs 3,525
Shares of Avenue Supermarts managed to breakout over the trend line hurdle of Rs 3,750, and exhibited a positive bias over the 200-SMA, which was also surpassed simultaneously. Now, with the breakdown of 200-SMA, the trend could display weakness, implying a down move towards Rs 3,600 and Rs 3,525. CLICK HERE FOR THE CHART
Eicher Motors Ltd (EICHERMOT)
Outlook: Stock may slip to Rs 3,000
The breakdown of the “Head and Shoulder” had led the stock to fall beneath the 200-SMA few sessions ago. Post the breakdown below the 200-SMA, the stock managed to hold ground claiming a potential reversal. This move did cross the 200-SMA again, but its failure of holding the upside bias could push this counter to Rs 3,000; way below the previous low. CLICK HERE FOR THE CHART
Indiabulls Real Estate Ltd (IBREALEST)
Outlook: Next support Rs 58
This is the fourth time the stock has failed to hold momentum over the 200-SMA since January of this year. A close below the immediate support of Rs 65 could trigger selling pressure resulting in stock entering short-term bearishness. Next support exists at Rs 58. CLICK HERE FOR THE CHART
KRBL Ltd (KRBL)
Outlook: Trend looks sluggish
The recent move that conquered the 200-SMA has seen aggressive structure that revealed intend to cross the trend line obstacle at Rs 400-level. If this move fails to float over the 200-SMA, the bears may take back the control, sending the stock price in the downward spiral to Rs 320 levels. CLICK HERE FOR THE CHART
