Nifty trend for Tuesday and stocks in news: TCS, HDFC, Metropolis Healthcare and Infosys
National Green Tribunal (NGT) might have imposed a total ban on the sale & use of firecrackers in NCR and in some other cities, where the air quality is below poor. However, on D-Street, the bulls continued with their fireworks as they reached new all-time high levels and for the first time ever, Nifty closed above the 12,400 mark.
Nifty is now up by 2.40 per cent year-to-date. Talking about fireworks, how can one forget a rocket cracker, which goes up and lights the sky with colours; similarly, the banking stocks acted no less than a rocket cracker as many of them skyrocketed more than 4 per cent.
The price action of the day formed a sizable bullish candle and in the last three trading sessions, we have observed the formation of back-to-back opening gaps, which remained unfilled or partially filled. Hence, Monday’s opening gap can be considered as a runaway gap, which indicates more upside in the near term. Further, Nifty closes outside the Bollinger Band, and a close outside the Bollinger Band is considered a continuation signal and moreover, the upper Bollinger Band is expanding, which reaffirms that the rally may continue.
The upside target for Nifty, based on the Fibonacci price extension, is around 12,854 in the near term. On the downside, Monday’s gap area (12,280-12,367) is likely to act as immediate support. Be with a bullish bias as long as Nifty maintains its rhythm of higher high and higher lows.
The RSI on the daily chart has reached an overbought zone; however, at the same time, it has marked a fresh 14-period high, which is a bullish sign. The +DI is above the ADX and –DI.
Overall, we would recommend the traders to continue their long position with a trailing stop-loss, and as long as we do not close below the prior bar low, be with a bullish bias.
TCS: TCS to acquire Postbank Systems from Deutsche Bank.
HDFC: HDFC reduces its retail prime lending rate (RPLR) on housing loans, on which its adjustable-rate home loans (ARHL) are benchmarked by 10 basis points, with effect from November 10, 2020.
Metropolis Healthcare: Metropolis Healthcare wins the ‘Diagnostic Company of the Year Award', conferred by Frost & Sullivan.
Infosys: Infosys partners with Arizona State University to enhance end-to-end learning using digital solutions.