2 Breakdown Shares that Remained Favorite of Bears Today!

After the RBI’s decision to maintain the status quo, the markets sold off, with the benchmark Nifty 50 index closing the session 0.49% down at 18,634.55. Opposite to yesterday, today’s session was full of red numbers on the screen and only Nifty Metal and Nifty Energy indices were able to close in the green.

In that vein, here are two counters that remained on bears’ radar and contributed to spoiling the mood of investors.

Indian Hotels Company Limited

Indian Hotels Co. Ltd (NS: IHTL ) is in the hospitality sector, having a market capitalization of INR 56,226 crores. Structurally, the stock is in a strong bull run as it has consistently been making new highs since April 2023, however, it seems like the short-term correction is now taking place. The stock fell 3.8% to INR 380.8 and just closed at the lower support of the rising trend channel.

Image Description: Daily chart of Indian Hotels Company with volume bars at the bottom

Image Source: Investing.com

This is a bullish price pattern, however, falling below the lower trendline would mean a breakdown which might trigger a selling spree in this counter. As it is at make or break level, traders can keep an eye on it and if it slips below INR 380 in subsequent sessions, a further fall to INR 350 can be expected. As the rising channel is quite steep, the probability of a breakdown is high.

Kotak Mahindra Bank Limited

Kotak Mahindra Bank Ltd. (NS: KTKM ) is a private-sector lender with a market capitalization of INR 3,85,803 crores and trades at a P/E ratio of 26.1. The bank rallied quite sharply in the recent past after an increase in its weightage in MSCI but the buying frenzy is fading now. The stock tanked 2.73% to INR 1,886.5 on Thursday and closed below the support of INR 1,900.

Image Description: Daily chart of Kotak Mahindra Bank with volume bars at the bottom

Image Source: Investing.com

This is quite a bearish sign for the stock, especially considering the fact that there is a gap on the chart that is still open amid a gap-up opening on 11 April 2023. If the stock is coming back to fill the gap, then traders can expect a good downside potential from the CMP. Even in the best possible case, traders should not eye for levels below INR 1,760 (spot).

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