GRSE, Swiggy, Jio Fin, 2 other stocks form 'Death Cross', show tech charts

In general, 'Death Cross' is considered as a bearish indicator. Technical analyst, Hitesh Tailor examines GRSE and Jio Financial stock charts and explains why the bias seems negative here.

Technical charts show that 5 stocks from the Nifty 500 index namely - Swiggy, Jio Financial Services, Garden Reach Shipbuilders & Engineers (GRSE), Sarda Energy & Minerals and Bharti Hexacom - have witnessed the formation of 'Death Cross' pattern in recent trading days.  In technical terms, 'Death Cross' is considered as a bearish chart pattern potentially indicating a major trend reversal from positive to negative. The term 'Death Cross' implies that the short-term, the 50-day moving average (50-DMA) of the underlying asset/ stock has now slipped below the long-term 200-day DMA.

Here's a look at these 5 'Death Cross' stock charts:

Swiggy stock chart

Current Market Price: ₹328 

 

 

  Swiggy's daily chart shows that the stock has witnessed a steep 22 per cent fall, after it tested the Supertrend line in mid-November to a low of ₹318 yesterday. In the process, Swiggy stock also plunged below the long-term 200-DMA. The 200-DMA now quotes at ₹385.47, while the 50-DMA slipped to ₹383.63. 

GRSE stock chart

Current Market Price: ₹2,282 

 

  Apart from the 'Death Cross' formation, GRSE stock is also seen trading below its 20-, 50-, 100-, and 200-EMAs. This alignment reflects a clear bearish bias on the daily chart, with the clustered moving averages acting as strong overhead resistance, says Hitesh Tailor, Technical Research Analyst at Choice Broking.  "At present, the GRSE stock is attempting to stabilize near a prior swing low. However, the recovery lacks confirmation as long as prices remain capped below the key EMAs. A sustained move above these averages is necessary to weaken the bearish structure and improve the probability of an upside move toward resistance levels of ₹2,500 and ₹2,770," explains Tailor.  The analyst cautions that the downside risks for the stock remain elevated, with crucial support seen at ₹2,200 levels. A breakdown below it could trigger fresh selling pressure towards ₹2,000 or lower demand areas, the analyst said. 

Jio Financial stock chart

Current Market Price: ₹263 

 

    Jio Financial Services stock daily chart exhibits a lower-high, lower-low formation, reinforcing the grip of bears and indicating a well-established downtrend, says Tailor. Adding that the stock currently trades below its key EMAs, which are stacked overhead and sloping downward, acting as a rigid supply zone.  The analyst reckons that the current price action is significant as the stock trades near its previous swing low. But for an upside breakout the stock needs to clear the overhead resistance.  "The area around ₹260 - ₹262 is critical for the stock. However, for a reversal Jio Financial will need to give a decisive breakout above ₹275 – ₹280 zone; for a likely up move towards ₹290 and ₹300 levels," says Tailor.

Sarda Energy & Minerals

Current Market Price: ₹465 

 

    Sarda Energy chart shows that the stock has cracked over 28 per cent from its high of ₹640 in mid-September to a recent low of ₹453. The 200-DMA stands at ₹500.35, and the 50-DMA at ₹499.25. 

Bharti Hexacom

Current Market Price: ₹1,605 

 

  Bharti Hexacom stock is seeing the formation of 'Death Cross' today, with the 50-DMA at ₹1,750 slipping below the 200-DMA, which stands at ₹1,751.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.