An expected cut of 25 basis points from Fed chair Jerome Powell to curb the economic slowdown as the lower generation of Job openings data, uptick in Initial Jobless claims and reduction in total GDP of U.S. economy has distorted the harmony of the ongoing economic situation. The decision to scissor the benchmark rate consecutively has raised various questions over the credibility and strengthen the rumors of slowdown which has also put pressure on the domestic index. The Indian benchmark opened on a flat to positive note at 10,845.20 levels and continued its falling spree after slipping below 10,795 levels that negated the formation of ‘Homing Pigeon’ candlestick pattern formed in previous trading session and made an intraday low of 10,700 levels. Out of 2118 stocks, 365 are advanced, 1378 are trading in red and 375 are unchanged. All sectors are trading in deep red while metal stocks lost the most, currently trading at 2,351.45, 2.45% below from its previous close. On daily scale, the index has witnessed a steep fall after sensing resistance from 2,448.53 levels. The index is trading below the bearish crossover of 50 days and 200 days Moving Average. RSI is trading at 45.59 levels. DMI’s have shown a failed convergence along with ADX at 33.40 levels, hinting for continuation of bearish momentum. Although Directional Movement and RSI 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 Steel: Stock with highest free float market capitalization in trading at 342.25, 4.32% below from its previous close. There has been a block deal of 162,438 shares on Aug 30, 2019. The stock is trading below 50 days Exponential Moving Average.
- Hindustan Copper: Top loser in today’s session is trading at 35.10 levels, 4.75% belwo from its previous close. The company had reported net sales at 304.07 crores, down 27.89% from its preceding year.