It says that a shift in the trend of the index always come after standard deviation in the concerned underlying asset start decay. The index was expected to trade with firecrackers in today’s session as tariff war between Sino-U.S. started de-escalating after China came forward with an offer to soften the tariffs levied on them and revoke the ban on giant telecommunication Huawei in lieu of that China will buy products from U.S but the index delivered a lackluster show. The index opened on a positive note at 11,028.05 levels and continued to perform lackluster in a narrow range of 11,011.65-11,054.80 levels. Yes Bank zoomed 10% after Yes Bank’s Rana Kapoor confirmed his talks with PayTm to sell his stake. It stocks are bleeding after domestic currency got appreciated. Out of 2,123 stocks, 1,341 are advanced, 44 are trading in red and 348 are unchanged. Almost all indices are trading in green trajectory while Auto stocks gained the most, currently trading at 7,413.80 levels, 3.36% above from its previous close. On daily scale, the index has witnessed a steep rally after forming a ‘Double Bottom’ pattern that possesses high reliability. Bollinger Bands have shown lower strength while re-test of the previous lows. Bollinger %B didn’t slip below zero levels. DMI’s have signaled a convergence that will fuel the bull rally. Although Bollinger twins and DMI’s 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.
- Tata Motors: Top gainer in auto stocks is trading at 132.60 levels, 9.47% above from its previous close. There has been a block deal of 454,404 shares in morning session today. The stock has reported 58% dip in total sales in August.
- Eicher Motors: Premium two-wheeler producer is trading at 17,000.25, 5% above from its previous close. There has been a block deal of 5,278 shares on Sep 09, 2019. The stock is trading above 30 days Exponential Moving Average.
- TVS Motor: The stock is trading at 404.15, 4% above form its previous close. There has been a block deal of 181,617 shares on August 27, 2019. The stock is trading above 50 days Moving Average.