Market veterans are betting on a steep downfall towards the index is heading as the bears were having a swift control over a week but the ‘calm’ attitude initiated by U.S. towards China managed to cheer the global and Asian markets. The Indian benchmark opened in a green territory after U.S. Trade representative confirmed for negotiations with China in October on tariffs slapped by the two largest economies to each other. The index opened at 10,887 levels and managed to sustain at higher levels after breaking above the psychological resistance of 10,900 levels and made an intraday high of 10,947 levels but sensed a hurdle near intraday highs levels from primary trend line placed on lower time frame. Capacite Infratech received order worth Rs. 4,502 crores from City and Industrial Corporation of India. Out of 2,111 stocks, 1,106 are advanced, 616 are trading in red and 389 are unchanged. Almost all indices are trading in green territory while auto stocks gained the most, currently trading at 7,073.45 levels, 1.80% above from its previous close. On daily scale, the index has been bounced back after sensing support from 6,971.12 levels. Bollinger Bands have shown lower strength while re-test of the previous lows. Bollinger %B didn’t slip below zero levels. Although Bollinger twins are not the only indicators to dictate the future prices, one can make use of other tools like Fibonacci, Andrew Pitchfork, Chart and Harmonic Patterns.
Some stocks of this counter are also witnessing heavy volumes and momentum that are convincing the emerging trend.
- Eicher Motors: Top gainer in auto sector is trading at 16,429.55 levels, 4.34% above from its previous close. There has been a block deal of 7,057 shares in morning session today. The stock has made its 52-weeks low recently near 15,200 levels.
- Maruti Suzuki Ltd.: India’s leading automobile producer is trading at 6,132 levels, 2.87% above from its previous close. There has been a block deal of 11,948 shares on Sep 04, 2019.The company has reported a drop in automobile sales by 32.7% in August.
- TVS Motor: Major two-wheeler producer is trading at 380.95, 2.67% above from its previous close. There has been a block deal of 181,617 shares on Aug 27, 2019. The stock is trading above 50 days Moving Average.