The optimism led by de-escalation in tariff war between Sino-U.S. has not only push the indices of global and other Asian markets but also acted as a catalyst, which has up thrust the Indian benchmark after consecutive days of long liquidation. The Indian benchmark had a positive opening at 11,469 levels managed to capitalize its positive opening and started moving higher after negating the ‘Bearish Belt Hold’ candle stick formation in previous trading session and breach the psychological resistance of 11,600 levels. Vedanta, M&M and ZEEL are top gainers while Yes Bank, Infosys and Hindustan Unilever were top losers. The market is expected to remain cautious on account of upcoming earnings season. On indices upfront, almost all sectors are trading in green out of which metal stocks are shining the most, currently trading at 2,503.1 levels, 3.44% above from its previous close. On daily scale the index has formed a classic ‘Three Rising Methods’ candle stick pattern that signals for continuation of bullish momentum after three consecutive long liquidation days. The index is trading below the magic wand of 89 days (High-Low) Moving Average. Potential resistance is placed at 2,649 levels. RSI is trading at 56.46 levels showing no signs of divergence and oversold. DMI’s have been converged with ADX at 26.03 levels that signals for continuation of 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.
- MOIL: Top gainer in today’s session is trading at 133 levels, 6.06% above from its previous close. The stock has been bounced back after forming a 52-week low at 118.50 levels. The stock is trading above 30 days Exponential Moving Average.
- NMDC: Major iron ore and copper exploration company is trading at 90.73 levels, 5.73% below from its previous close. The company has reduced its iron ore prices by Rs. 200 per tonne.
- Vedanta: India’s largest diversified natural resources company is trading at 164.80 levels, 5.58% above from its previous close. The company is going to add coal mining in its business portfolio.