Nifty trend and stocks in action on October 06, 2020

Nifty opened the session at 11,487.80 and went on to make a high of 11,578, which was near the resistance level mentioned in our last write-up. Nifty witnessed profit booking at higher levels and as a result, it shaved off nearly 75 points from the day’s high to settle at 11,503 mark at the close.

The price action resembles a shooting star pattern, which is interpreted as a type of reversal pattern but it would require further confirmation. Nifty has now closed above the downsloping trendline, which is formed by adjoining levels of 11,794 and 11,618.

Going ahead, the zone of 11,564-11,590 would continue to act as a wall of resistance for the bulls and until and unless Nifty does not clear this zone on a closing basis, we should not expect a runaway rise in the index. Why do we say so? Because if you remember the big bearish candlestick that was formed on August 31, the 50 per cent retracement level of that big bearish candlestick is around 11,559 levels and the price has been rejected twice from this zone as on September 3 and 14. However, on September 16, it managed to close above this zone but it proved to be a trap as there was no follow-through day. So, until and unless this region is cleared, we need to remain skeptical on the upside.

On the downside, immediate support is seen around 11,420 levels, followed by 11,340. So, Nifty right now is at a crucial juncture and if it fails to close above 11,620 levels and closes below the 11,450 levels, it would dent the confidence of the bulls as it would be the case of a lower top formation and there would also be a confirmation to shooting star pattern.

Hence, Tuesday’s session is a key trading session for traders to watch out for.

Tata Motors: The retail sales of Jaguar Land Rover for the three-month period to September 30, 2020, significantly improved from sales in the preceding quarter but continued to be impacted by COVID-19. Retail sales for the quarter ending September 30, 2020, were 113,569 vehicles, up by 50 per cent from sales of 74,067 in the prior quarter, while down by 11.9 per cent from pre-COVID levels, a year ago. China sales were particularly encouraging, up by 14.6 per cent in the prior quarter and 3.7 per cent YoY. The month of September also saw sales up by 28.5 per cent on YoY in China.

IEX: IEX Electricity market trades 5,675 MU in September 2020, registering a 45 per cent YoY increase.

HDFC Bank: The bank’s advances recorded a growth of 16 per cent YoY and the bank’s deposits reported a growth of around 20 per cent YoY.

HDFC: During the quarter ended September 30, 2020, individual loan approvals grew by 9 per cent compared to the corresponding quarter of the previous year. The month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded compared to the corresponding month of the previous year.

Infibeam Avenues: The company enters into an agreement with Jio platforms and its affiliates (JPL).