Reliance Industries (RIL) and PNC Infratech stocks on Tuesday observed a 'death cross' pattern on the daily chart. 'Death cross' is a chart pattern that signals a significant change in the trend. In simple terms, it signals a bullish to bearish trend.

Technically, the term 'death cross' is used when the stock goes below the 200-DMA in the long term. This means that the trend for the stock is likely to weaken in the short term and the price may move downwards.

Reliance (RIL)

Current price: Rs 2,701

Downside risk: 4.9%

Support price: Rs 2,675- Rs 2,640

RIL stock is just 4 trading sessions away from becoming ex-bonus. Reliance Industries has set October 28 as the record date for issuing 1:1 bonus shares to eligible shareholders.

Despite the announcement of a 1:1 bonus issue by the company, RIL's stock has been witnessing a continuous decline in the stock market for the last one month. The company's stock has fallen 12 percent from its highest level of Rs 3,067 on September 27. Also, it is trading below the short-term average on a daily scale.

A 'death cross' trend was seen forming on the daily chart and the stock slipped below its 50-DMA at Rs 2,913 and 200-DMA at Rs 2,914. Last week, the RIL stock had also given a downside breakout on the weekly scale. The chart shows that the stock may seek support around its 100-WMA (weekly moving average), which is at Rs 2,570 level.