Nifty trend and stocks in action on September 11, 2020
Nifty opened the session with a gap-up and it remained in the positive momentum throughout the session; all thanks to Reliance Industries, which contributed to the bulk of the gains for Nifty. At close, Nifty settled near 11,450 mark after recording its highest closing in the last five trading sessions.
The price action of the day formed a bullish candle and if we consider the formation of the last three trading sessions, then it resembles a morning star pattern. With Thursday’s strong upmove, Nifty has reclaimed its 21-day EMA. However, Nifty closed near the downside gap area (11,507-11,452), which was created on September 4.
The abovementioned gap area is going to act as immediate resistance for the bulls as this i.e. Friday’s opening and the movement thereafter would be closely monitored. Sustaining above this level would help the index to move further up towards the levels of 11,560-11,570 as it is a 61.8 per cent retracement level of the recent fall from the swing high of 11,794 to the low of 11,185. On the flip side, the support level is seen around the upside gap (11,298- 11,327) of September 10.
Interestingly, the bearish engulfing pattern, which was formed on the weekly chart of Nifty last week, has seen no follow-through move. In fact, Nifty is forming a hammer pattern but since there is one more trading session to go for this week, we will come to know about it only on Friday. However, if the index closes above the one of 11,560-11,570 then, all the advantages which the bears gained at the onset of September month would be forfeited.
Hence, the level of 11,560-11,570 would be the key level to watch out in the near term for the market participants. In case, we get a rejection around this level, then it shall give a good risk-reward set up for the short traders. However, we would advise the traders to close a short position in case Nifty closes above the 11,560-11,570 level.
All-in-all, Friday’s session could set the tone for the near term and the level of 11,560-11,570 would hold key importance.
ITI: The company was declared as L1 in the ‘Army Static Switched Communication Network (ASCON)-phase IV in the year 2017. In this regard, ASCON working group has communicated to the company that the necessary approval for the project has been obtained and the contract is expected to be signed very shortly. The value of the bid is approximately Rs 7,796 crore.
TCS: TCS BaNCS recognised as a leader in Gartner Magic Quadrant for Global Retail Core Banking.
Infosys: Infosys, along with Governor Raimondo (Governor of Rhode Island), announces plans to hire 500 more tech employees in Rhode Island.
Reliance Industries: The company has clarified on a news item appearing in a newspaper that as a policy, we do not comment on media speculation and rumours and we cannot confirm or deny any transaction which may or may not be in the work. It stated, “Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges.”
Indo Count: Indo Count Industries Ltd’s Boutique Living, a premium bed & bath brand, announced its association with BoscoNet, a New Delhi-based NGO, to launch #GivingwithLiving, their social responsibility campaign, to support stranded migrant labour.
Motherson Sumi: The company announced the successful pricing of its maiden unsecured 3-year NCD issue. The original issue size was Rs 1,500 crore, which was upsized to Rs 2,130 crore (using greenshoe option) on the back of overwhelming investor demand. Overall, 24 investors (including 23 QIBs) have invested in the NCDs.