Yes, the Indian markets are running on steroids and a move like 6-7% upside happened in decades. The stimulus of reducing the corporate taxes from FM Nirmala Sitharaman is not less than a bullet taken by government but a booster shot is continuously fueling the rally in the index. The Indian benchmark opened on a gap up note after forming a ‘Long White Day’ candle stick pattern on daily scale and continued to move further but find resistance at 11,686.66 levels and witnessed some long liquidation. Out of 2143 stocks, 1230 are advanced, 550 are trading in red and 363 are unchanged. All indices are trading in green except the IT and pharma stocks that have shed 2.87 and 1.80% respectively. Private Banks are the top gainers that added 906.3 points, currently trading at 16,957.05 levels, 5.65% above from its previous close. On daily scale, the index has witnessed a sharp momentum on upside after breaching the primary trend line placed. On daily scale, the index is trading above 89 days (High-Low) Moving Average. RSI is trading at 67.33 levels showing no signs of divergence and oversold levels. DMI’s have been converged and signaling for a continuation of bullish momentum. 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.
- Indusind Bank: Top gainer in today’s session is trading at 1,521.10 levels, 7.21% above from its previous close. There has been a block deal of 65,786 shares in morning session today. The stock is trading above 30 days Exponential Moving Average.
- ICICI Bank: India’s second largest private bank in terms of free float market capitalization is trading at 447.6, 7.25% above from its previous close. There has been a block deal of 154,441 shares on Sep 03, 2019.
- Kotak Mahindra Bank: The stock is trading at 1,638, 6.42% above from its previous close. There has been a block deal of 65,552 shares on Sep 18, 2019. The stock is trading above 30 days Exponential Moving Average.