The impeachment enquiry on U.S. President Donald Trump has spooked the global and other Asian markets as investors are nervous on account of geopolitical tensions and a sense of worry has occurred in their sentiments. The Indian benchmark opened on a flat to negative note led by pessimism in the market and continued to witness more downside after slipping below 11,530 levels that triggered the formation of ‘Doji Star’ candle stick formed in previous trading session and activated more sellers to execute short buildups to an intraday low of 11,440 levels. Out of 2126 stocks, 465 are advanced, 1290 are trading in red and 371 are unchanged. All indices are trading in deep red trajectory while Auto stocks bleed the most, currently trading at 7,447.5, 4.70% below from its previous close. On daily scale, the index has witnessed a steep fall after sensing resistance from potential ‘Supply Zone’ that is placed in a range of 7,855-7,947 levels. The index is dancing on the tunes of 89 days (High-Low) Moving Average. RSI is trading at 52.93 levels and continuously forming higher highs and higher lows. –DMI has been converged in +DMI that signals for continuation of bullish momentum. The index is likely to bounce back after a healthy long liquidation and continue to remain in positive trajectory. 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 Motors: Top loser in today’s session is trading at 122.20 levels, 6.21% below from its previous close. The company is inculcating the hybrids model in India along with electric vehicles technology stated by Guenter Butschek, Managing Director – Tata Motors.
- TVS Motor: India’s midcap two-wheeler manufacturer is trading at 395.50 levels, 5.71% below from its previous close. The stock is trading above 50 days Exponential Moving Average. There has been a block deal of 181,617 shares on Aug 27, 2019.
- Ashok Leyland: Major commercial vehicle producer is trading at 70.95 levels, 5.59% below from its previous close. The company has reported 47% dip in total sales in August. There has been a block deal of 1,020,909 shares on Sep 03, 2019.