Nifty 50: Top losers on 20 December 2024; should you buy the dip strategy?

Today, the Nifty 50 experienced notable losses, with several key stocks showing steep declines. Here's a breakdown of the top 5 losers and the market trends influencing their movements:

1. Tech Mahindra Ltd. (TECHM)

% Change: -3.89%

Points Change: -68.30

Open: ₹1770 | Close: ₹1686.05

Technical Indicators:

50 EMA: ₹1741 (bearish short-term trend)

200 EMA: ₹1733 (long-term bearish sentiment)

RSI: 39.02 (approaching oversold, potential for a rebound)

MACD: -5.66 (indicating strong bearish momentum)

MACD Signal: 12.78 (supports continued downward movement)

2. Axis Bank Ltd. (AXISBANK)

% Change: -3.34%

Points Change: -37.05

Open: ₹1103.95 | Close: ₹1071.85

Technical Indicators:

50 EMA: ₹1142 (short-term bearish outlook)

200 EMA: ₹1145 (long-term downtrend)

RSI: 24.24 (below 30, signaling oversold, potential for price reversal)

MACD: -9.68 (supports continued bearish momentum)

MACD Signal: -2.74 (further downward pressure)

3. IndusInd Bank Ltd. (INDUSINDBK)

% Change: -3.62%

Points Change: -34.95

Open: ₹960 | Close: ₹929.45

Technical Indicators:

50 EMA: ₹995 (short-term bearish trend)

200 EMA: ₹1003 (long-term downtrend)

RSI: 22.65 (oversold, indicating a possible reversal)

MACD: -12.54 (strong bearish pressure)

MACD Signal: -8.80 (continued bearish outlook)

4. Mahindra & Mahindra Ltd. (M&M)

% Change: -3.59%

Points Change: -108.30

Open: ₹3014.65 | Close: ₹2906.35

Technical Indicators:

50 EMA: ₹3000 (short-term bearish)

200 EMA: ₹2987 (long-term downtrend)

RSI: 38.40 (approaching oversold, potential reversal)

MACD: 9.08 (bullish momentum)

MACD Signal: 22.03 (suggests upward movement, despite recent declines)

5. Trent Ltd. (TRENT)

% Change: -3.67%

Points Change: -260.45

Open: ₹7125 | Close: ₹6831.55

Technical Indicators:

50 EMA: ₹6833 (near support level)

200 EMA: ₹6787 (neutral long-term outlook)

RSI: 47.40 (neutral, no clear signal for a trend reversal)

MACD: 70.56 (bullish potential)

MACD Signal: 76.28 (signals potential upward momentum)

Key Takeaways for Traders and Investors

Tech Mahindra, Axis Bank, and IndusInd Bank are showing bearish trends, with their stock prices trading below key moving averages (50 EMA and 200 EMA) and negative MACD readings.

RSI for these stocks suggests they are in oversold territory, possibly indicating a price reversal if buying pressure increases.

Mahindra & Mahindra and Trent Ltd. show mixed signals. While M&M may experience a rebound due to its positive MACD, Trent Ltd. has the potential for upward movement if the positive trend continues.

By closely monitoring these technical indicators, investors can gain a deeper understanding of both short-term and long-term trends, which could guide their investment decisions.

Disclaimer: Investors are advised to consult with a financial expert before making any investment decisions.