Positive cues from global markets were expected after China came forward with a 'calm' attitude as trade talks with greenback government extended. The former has delayed the tariffs levied on billion worth of U.S. goods and excused some U.S. anti-cancer drugs from its tariffs. The Indian benchmark opened on a positive note at 11,058 levels but failed to capitalize the positive cues from largest economies and positive opening as it started drifting lower after slipping below 11,050 levels and made an intraday low of 11,004 levels. Walchandnagar Industries surged more than 20% to Rs 72.45 today after the company received an order from ISRO worth Rs. 77.20 Crore. Out of 2123 stocks, 1028 are advanced, 732 are trading in red and 363 are unchanged. All indices are trading mixed while IT stocks bleed the most, currently trading at 15,558.70 levels, 1% below from its previous close. The index has witnessed a steel fall as the domestic currency is appreciating against the greenback. On daily scale, the index has witnessed a steep fall after forming a ‘Three falling Peaks’ pattern that signals for continuation of bearish momentum and possesses high reliability. RSI has witnessed a sharp dip showing no signs of divergence and oversold. DMI’s are on the edge of convergence that will push the index lower. The index is trading near the kissing distance of 200 days Moving Average. Although RSI and Directional movement 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.
- Infosys: Narayana Murthy led Infosys is trading at 811.90 levels, 1.09% below from its previous close. There has been a block deal of 121,102 shares on Sep 11, 2019. The company has completed its 8,260 crores buyback on Aug 27, 2019.
- Mindtree: The stock is trading at 668.95 levels, 1.55% below from its previous close. The company has reported net sales at Rs. 1,834.20 crores this quarter. The stock is trading near its 52-week low levels.
- Wipro: The stock is trading at 244.70, 1.39% below from its previous close. The company has launched three Artificial Intelligence solutions powered by Intel. The stock is trading below 200 days Moving Average.