It says that ‘ the equity and other instruments retrace back to cover their gaps’ and a market like India that is known for discharging every patterns has witnessed long liquidations to cover the ‘ Breakaway Gap’. The Indian benchmark opened below the psychological support of 11,500 levels and continued to slip further after triggering the formation of ‘Bearish Harami’ candle stick pattern on daily scale and activated more sellers to execute short positions to a low of 11,392 levels but bounced back after filling the ‘Breakaway Gap’ above 11,400 levels. HCL Tech, Infosys and UPL are top gainers while Yes Bank, Indusind Bank and Zeel are top losers. Out of 2136 stocks, 412 stocks are advanced, 1367 are trading in red and 357 are unchanged. On indices upfront, all sectors are trading in red while IT stocks are in green trajectory, currently trading at 15,543.35 levels, 2.01% below from its previous close. On daily scale, the index has been bounced back after sensing support from primary trend line placed. The index has formed a classic ‘Bullish Divergence’ in which price from a low, bounce back and traces a new bottom but oscillators follow different pattern. The index is trading near 89 days (High-Low) moving Average. Although Directional Movements 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.
- HCL Technologies: Top gainer in today’s session is trading at 1,088.90 levels, 4.57% below from its previous close. The stock is trading above 200 days Moving Average. There has been a block deal of 271,289 shares on Sep 25, 2019.
- Infosys: Narayan Murthy-led-Infosys is trading at 805 levels, 2.90% above from its previous close. There has been a block deal of 450,495 shares on Sep 27, 2019. The stock is trading above 30 days Exponential Moving Average.
- TCS: Stock with highest free-float market capitalization is trading at 2,102.20 levels, 2.21% above from its previous close. There has been a block deal of 40,037 shares on Sep 27, 2019. The company has signed 5-year agreement with General motors to support global vehicle programme.