Nifty trend for Tuesday and stocks in news: Wipro, Sunteck Realty and Hero MotoCorp
Nifty kicked off the week with a gap-up opening and traded with positive bias throughout the day. However, the showstoppers of the day were the banking and financial stocks. One could gauge the dominance of the banking and financial stocks in Monday’s session by the fact that its stocks were among the top five contributors for the day namely ICICI Bank, HDFC, Kotak Bank, Axis Bank, and SBI. At close, it ended higher by 0.94 per cent at 11,837 levels.
The price action of the day formed a Doji candlestick pattern with a gap-up and the gap remained unfilled. Nifty has now retraced 61.8 per cent of the previous decline from 12,025 to 11,661. For the majority part of the day, Nifty traded within the first-hour range. Moreover, on the 60-minutes timeframe, barring one bullish bar, most of the bars were indecisive in nature. As we have been mentioned before, a similar pullback rally was seen after the big fall of August 31, the pullback sustained for three days. Let us watch this time, whether Nifty can repeat the history or will it extend the rally further and move above Thursday's high.
The immediate resistance for Nifty is placed at the levels of 11,900 and a move above this could lead to the further upside towards 11,940, followed by the 12,000 mark.
Now let us look at the structure of Bank Nifty, which for the first time, managed to close above the 24,200 mark since August 28. Further, it has managed to close above the 6-days broad range. It’s trading above its 20-DMA and the 20-DMA is in a rising trajectory. Going forward, if Bank Nifty sustains above the 24,350 mark, we could see the extension of the current upmove, and targets would be around 25,000-25,600 in the medium term. RSI entered into a bullish zone while the stochastic oscillator has given a buy signal.
Overall, we expect Bank Nifty to continue its outperformance if it manages to clear its immediate hurdle of the 24,350 mark.
Wipro: The company announced that it has won an Application Management (AMS) and Services Integration & Management (SIAM) contract from Fortum, one of the leading clean-energy companies headquartered in Espoo (Finland).
Sunteck Realty: Sunteck Realty has entered into an agreement to acquire an approximately 50-acre land parcel in Vasind (Maharashtra). The project will offer around 2.6 million square feet. Envisaged as one of the largest residential developments under the ‘Sunteck World’ brand in Thane District, the project will have a revenue potential of Rs 1,250 crore, spanning over the next 4-5 years.
Hero MotoCorp: The company has launched a new edition of the iconic Splendor motorcycle i.e. Splendor+ Black and Accent.