Nifty trend for Tuesday and stocks in news: HCL Technologies, Galaxy Surfactants, NTPC and Cosmo Films
In India, the festival of Dussehra, which signifies the triumph of good over evil, was celebrated last Sunday. And on Monday precisely, the reverse was seen on the D-Street as the bear, which is a bad character on D-Street, butchered the bulls. As a result, Nifty tumbled 1.36 per cent to settle below the 11,800 mark.
Defying the negative global cues, the index opened the session almost flat but it was under the selling pressure that exuberated in the afternoon session as news related to the increasing Coronavirus cases in the European region, prompting more restrictive measure daunted the sentiment and further, to rub salt to the wound was the profit warning issued by one of the region’s tech giant SAP.
The price action of the day formed a large bearish candle carrying lower high and lower low. Technically, the index is still trading within the broad trading range of the big bearish bar formed on October 15. Further, it took support around the 20-DMA but closed below the prior week’s low.
On the lower timeframe i.e. 60-minute chart, we had mentioned the formation of a bullish continuation pattern i.e. an ascending triangle pattern. On Monday, Nifty witnessed a breakdown of the ascending triangle and the target implication was the same as on the upside breakout. The downside target is almost 360 points from the breakdown level, which means near about 11,500 levels. Going ahead, the 20-DMA, which is placed around the level of 11,718, is a very important support level for Nifty and a breach of this level would open gates for Nifty to test the lower range of the big bearish bar of October 15, which is around 11,661, followed by the final target of 11,500.
The MACD has seen a negative crossover and generated a sell signal. The 14-period RSI on the daily timeframe had turned down from the 62 mark and now below the prior swing low as well as below the 9-day average.
Overall, the 20-DMA is an important immediate support for the index, and sustaining below this level would open gates for the 11,661 level.
HCL Technologies: The company completed the acquisition of Cisco’s Self Optimising Network (SON) technology.
Galaxy Surfactants: CRISIL has revised and upgraded the company’s long-term credit rating from CRISIL A+/positive to CRISIL AA-/stable and the short-term credit rating from CRISIL A1 to CRISIL A1+.
NTPC: The board of directors of the company is scheduled to meet on November 2 to consider a proposal for the buyback of equity shares of the company.
Cosmo Films: The company to buy back shares worth Rs 73 crore at Rs 576 per share.