Nifty trend for Wednesday and stocks in news: Reliance Industries, Motherson Sumi Systems, Lasa Supergenerics, Cipla and Indo Count Industries
Nifty scores hat-trick of gains on Tuesday as it added 0.20 per cent to close at 11,897 levels. Owing to negative global cues, Nifty started the session with some hiccups; however, it took support near about the prior bar low and soon started to witness buying interest. It touched an intraday high of 11,949 and if you recall, we had mentioned that the immediate target of Nifty is placed at 11,940. However, it failed to sustain at higher levels and slipped almost 53 points from the day’s high, and at the close, it just settled below the 11,900 mark.
The price action resembles a shooting star pattern. The index is still trading within the last Thursday’s bearish bar range. Also, the price structure is almost a mirror image of the pullback after the August 31 fall. Now the big question is: Will Nifty be able to surpass last Thursday’s high of 12,025 or repeat the earlier scenario, where after a pullback of three days, it nosedived?
A lot would depend on the gap area of October 19 (11,789-11,820). If the bulls manage to hold above this level, then it would be mean that the bulls won’t let the bears take over so easily. Hence, the zone of 11,789-11,820 would be a crucial support area in the near term while, on the upside, the bulls need to sustain above the level of 11,950 for the continuation of the upmove.
Hence, Wednesday’s session would be crucial to watch out to check whether history repeats itself or bulls rewrite the history. Another interesting point is that the broader market outperformed Nifty and Nifty Small-cap index is placed at a breakout level of a symmetrical like triangle pattern. Thus, we would advise the traders to look for stock-specific trading opportunities as that would be more meaningful at this moment.
Reliance Industries: Qualcomm Technologies, Inc. and Jio Platforms Limited (Jio) along with its wholly-owned subsidiary, Radisys Corporation announced their expanded efforts to develop an open and interoperable interface compliant architecture-based 5G solutions with a virtualised RAN. This work is intended to fast track the development and roll out indigenous 5G network infrastructure & services in India.
Motherson Sumi Systems: Motherson Rolling Stocks S de RL de CV (MRS), a wholly-owned indirect subsidiary of Motherson Sumi Systems through PKC Group Oy, has signed an assets sale and purchase agreement with Bombardier to acquire the activities of electrical wiring interconnection systems performed at Bombardier Transportation's manufacturing site in Huehuetoca (Mexico).
Lasa Supergenerics: An ex parte interim relief restraining its competitor from selling, offering for sale, importing, exporting, or dealing in Albendazole, using the proprietary confidential information exclusively owned by Lasa in respect of its product Albendazole, has been granted to Lasa on October 12, 2020.
Cipla: Cipla launches Nintib (Nintedanib capsules 100 mg, 150 mg) to treat idiopathic pulmonary fibrosis, in continuation of its fight against rare lung disease.
Indo Count Industries: Indo Count launches value-driven home textiles brand, ‘Layers’.