Top 5 Losers of NIFTY 50: A Day of Decline for Leading Stocks

In today’s trading session, several NIFTY 50 heavyweights witnessed significant declines, driven by bearish technical indicators and sector-specific pressures. Leading the list of losers were Shriram Finance Ltd. (SHRIRAMFIN), Grasim Industries Ltd. (GRASIM), Hero MotoCorp Ltd. (HEROMOTOCO), Bharti Airtel Ltd. (BHARTIARTL), and JSW Steel Ltd. (JSWSTEEL).

Top Declining Stocks:

1. Shriram Finance Ltd. (SHRIRAMFIN)

• Closing Price: ₹2,976.90
• Percentage Decline: -5.12%
• Day’s High/Low: ₹3,135 / ₹2,965.25

Analysis: SHRIRAMFIN faced a sharp sell-off, with a significant drop in RSI to 40.63, signalling oversold conditions. The stock’s 50-EMA (₹3062.95) and 10-EMA (₹3116.97) both remain above the closing price, confirming continued bearish momentum.

MACD levels also weakened, indicating growing downside risks. Sectoral challenges in the Credit Services space and overall market sentiment amplified the decline.

2. GRASIM (Grasim Industries Ltd.)

• Closing Price: ₹2599.70
• Percentage Decline: -3.18%
• Day’s High/Low: ₹2685 / ₹2595.35
   

Analysis: GRASIM’s decline was marked by a steep fall below its 10-EMA (₹2659.15) and 20-EMA (₹2647.92). The RSI dropped to 44.37, showing weakened momentum.

A bearish MACD of 15.47 further reinforced the stock’s downward trend. The Basic Materials sector, especially Building Materials, faced pressure as GRASIM struggled to sustain its recent recovery.

3. HEROMOTOCO (Hero MotoCorp Ltd.)

• Closing Price: ₹4415.10
• Percentage Decline: -2.73%
• Day’s High/Low: ₹4558.55 / ₹4397.35

Analysis: HEROMOTOCO continued its downtrend with a declining RSI of 28.08, approaching oversold territory. The stock’s 50-EMA (₹4676.98) and 20-EMA (₹4633.77) indicate sustained bearish sentiment.

MACD levels of -55.51 suggest further downside risks. Weak consumer sentiment in the Auto Manufacturers segment likely contributed to today’s drop.

4. BHARTIARTL (Bharti Airtel Ltd.)

• Closing Price: ₹1615.30
• Percentage Decline: -2.85%
• Day’s High/Low: ₹1658.65 / ₹1608.50

Analysis: BHARTIARTL failed to hold its recent gains, with the RSI dropping to 52.59 and MACD narrowing to 13.96.

The stock breached its 10-EMA (₹1619.87) and struggled to recover above intraday resistance levels. Sentiment in the Telecom Services industry turned cautious, likely driving today’s decline.

5. JSW STEEL (JSW Steel Ltd.)

• Closing Price: ₹966.85
• Percentage Decline: -2.37%
• Day’s High/Low: ₹990.80 / ₹961.45

Analysis: JSWSTEEL’s RSI declined to 44.09, signaling fading momentum. The stock’s closing price remained below its 10-EMA (₹990.94) and 20-EMA (₹987.25), indicating bearish dominance.

A weaker MACD of 4.87 suggests limited strength in the short term. The Steel industry faced headwinds, contributing to JSWSTEEL’s underperformance.

Key Takeaways from the Day

Sectoral Impact:

• The Financial Services sector was the hardest hit, with SHRIRAMFIN leading the losses.
• Basic Materials (GRASIM and JSWSTEEL) and Consumer Cyclical (HEROMOTOCO) also saw selling pressure.
• Telecom Services represented by BHARTIARTL showed signs of profit booking after recent gains.

Technical Weakness:

• All five stocks traded below key moving averages, confirming bearish trends.
• RSI levels for several stocks (HEROMOTOCO and JSWSTEEL) approached or entered oversold zones.
• MACD divergence for SHRIRAMFIN and GRASIM pointed towards further downside risks.

Outlook:

• Investors are advised to exercise caution and monitor support levels closely.
• For long-term investors, this dip may offer a potential entry point, provided there is a reversal in technical indicators and overall market sentiment.

Key Insights from Comparative Analysis

EMA Trends:

• All five stocks are trading below their respective 10-EMA and 20/50-EMA, signalling bearish momentum.
• SHRIRAMFIN and HEROMOTOCO exhibit the strongest bearish trends, with significant deviations from their EMAs.

MACD Divergence:

• HEROMOTOCO and SHRIRAMFIN have the most negative MACD values, indicating stronger bearish momentum.
• Stocks like BHARTIARTL and JSWSTEEL still have positive MACD values but show narrowing trends, signalling weakening bullish strength.

RSI Levels:

• HEROMOTOCO stands out with an RSI of 28.08, deep in oversold territory, suggesting potential for a technical rebound.
• SHRIRAMFIN and JSWSTEEL hover near 40, while BHARTIARTL is neutral at 52, showing resilience.