HPCL, Siemens, Petronet among 5 stocks with up to 22% downside risk

Technical chart shows that the key momentum oscillators for these 5 NSE stocks have turned negative; In case of a pullback, here are the key resistance levels for these 5 stocks.

The NSE Nifty 50 index has plunged nearly 7 per cent from its all-time high of 26,277 hit on September 27, 2024. In the process, the Nifty 50 index has broken below its key short-term moving averages and seems to be trading on a weaker note.

Similarly, the broader indices - the Nifty MidCap and SmallCap too have declined more than 6 per cent from their respective highs. Going ahead, the trend is likely to remain volatile amid the Q2 earnings season and uncertainty ahead of the US elections later this year.

Having said that, given the nature of the market, benchmark indices and select stocks are expected to stage periodic pullbacks. As such, here are five such stocks that can be avoided at higher levels, given the weak set-up on the technical charts.

 

Hindustan Petroleum (HPCL)

Current Price: Rs 399

Downside Risk: 12.3%

Support: Rs 378

Resistance: Rs 414; Rs 439

HPCL stock is seeing key negative divergence on one of its key momentum oscillators on the weekly scale - the MACD (Moving Average Convergence-Divergence). The MACD is a lead indicator which helps in identifying the stock trend. 

That apart, HPCL daily chart suggests that the near-term trend is likely to remain negative as long as the stock trades below Rs 439; with near resistance for the stock seen at Rs 414 levels. CLICK HERE FOR THE CHART

On the downside, HPCL stock can slide all the way to Rs 350 levels; with interim support expected around Rs 378.

 

Siemens

Current Price: Rs 7,180

Downside Risk: 8.4%

Support: Rs 7,100; Rs 6,900

Resistance: Rs 7,470; Rs 7,922

Siemens stock today has given a downside breakout on its daily super trend line; this indicates that the near-term bias for the stock is likely to remain bearish as long as the stock trades below Rs 7,922 levels. Interim resistance for the stock is seen at Rs 7,470.

On the downside, Siemens has near support at Rs 7,100 and Rs 6,900 levels; below which the stock seems on course to test the support at Rs 6,580 levels. CLICK HERE FOR THE CHART

IRCON International

Current Price: Rs 204

Downside Risk: 22

Support: Rs 186

Resistance: Rs 232; Rs 250

IRCON International stock has witnessed a step 41 per cent fall from its peak of Rs 346 in July 2024. The stock has since been making lower highs and lower bottoms on the daily scale. This week, the stock has given a fresh downside breakout on the weekly chart. Thus, the bias is likely to remain tepid at the counter. CLICK HERE FOR THE CHART

Chart suggests that the trend will remain subdued as long as the stock trades below Rs 261. On the upside, the stock may attempt a pullback to Rs 232 and Rs 250 levels given the oversold condition. Overall, the stock seems on course to test its 100-WMA (Weekly Moving Average) at Rs 159, with interim support likely at Rs 186.

 

Petronet LNG

Current Price: Rs 344

Downside Risk: 7.9%

Support: Rs 332

Resistance: Rs 348; Rs 352; Rs 365

Petronet LNG stock is seen testing support at its super trend line on the daily scale at Rs 332; which also coincides with the lower-end of the Bollinger Bands. However, given the negative divergence on key momentum oscillators, the stock is likely to face downward pressure in the near-term.

As such, the stock can drop towards its super trend line on the weekly scale at Rs 317. Immediate resistance for the stock stands in the Rs 348 - Rs 352 range. The upside seems capped around Rs 365. CLICK HERE FOR THE CHART

Ramkrishna Forgings (RK Forgings)

Current Price: Rs 967

Downside Risk: 15.7%

Support: Rs 939; Rs 909

Resistance: Rs 989; Rs 1,035

RK Forgings seems on course to test its super trend line support at Rs 909 at present. Given the weak cues from key momentum oscillators the stock could extend the fall to Rs 815 levels. Near support for the stock exists at Rs 939. The upside for the stock seems capped at Rs 1,035; with interim resistance seen at Rs 989 levels. CLICK HERE FOR THE CHART