Nifty trend for Monday & stocks in news: Mahindra & Mahindra, Escorts, Maruti Suzuki, Adani Enterprises & Welspun Enterprises

Last week, Nifty traded in the range of 407.40 points and ended the week with a loss of 288 points or 2.41 per cent while, Nifty Mid-Cap and Small-Cap lost 1.38 per cent and 2.92 per cent, respectively. Out of the last five trading sessions, Nifty ended in red for four trading sessions. On the weekly chart, price action has formed a bearish candle, carrying lower high and lower low.

On Friday, the index had opened with a minor upside gap and witnessed upside momentum in the first hour of the trading session. However, it failed to sustain above the 20-day EMA level for the second consecutive trading session and witnessed a fall. At one point, Nifty lost almost 213 points from the day’s high. However, the 50-day EMA came to rescue the bulls as, in the second half of the trading session, the index took support near the 50-day EMA level and recouped some losses. The price action formed a high wave candle, which indicates uncertainty and indecision among the traders.

The high wave candle is formed when the candle has a small body and long shadow on either side. The shadow of the candle indicates that neither the buyers nor the sellers have a clarity of which direction the market will head.  

Going ahead, the zone of 11,550-11,530 is likely to act as crucial support for the index as it is the confluence of the 38.2 per cent retracement level of its prior upward move (10,790.20-12,025.45) and it coincides with the 50-day EMA level. A breach of this support zone would open gates for a further correction towards the 11,406 level. While on the upside, the 20-day EMA level will act as a short-term resistance for the index, which is currently placed at the 11,731 level.

Mahindra & Mahindra: The company has announced that its overall auto sales (passenger vehicles+ commercial vehicles+ exports) for the month of October 2020 stood at 44,359 vehicles compared to 51,896 in October 2019. In the utility vehicles segment, Mahindra sold 18,317 vehicles in October 2020 compared to 17,785 vehicles in October 2019, registering a growth of 3 per cent. The passenger vehicle segment (which includes UVs, cars & vans) sold 18,622 vehicles in October 2020.

Escorts: The company’s Agri machinery segment (EAM) in October 2020 sold 13,664 tractors, which was the highest-ever October sales, registering a growth of 2.3 per cent against 13,353 tractors sold in October 2019.

Maruti Suzuki: The company has posted total sales of 1,82,448 units in October. This is a growth of 18.9 per cent over the same period of the previous year.

Adani Enterprises: The company has commenced commercial operations at Mangaluru International Airport with effect from October 31, 2020.

Welspun Enterprises: The company has announced the receipt of the provisional commercial operation date (PCOD) w.e.f. October 31, 2020, in respect of a project for four-Laning of Gagalheri-Saharanpur-Yamunanagar (UP/Haryana border) section of NH 73 under hybrid annuity model (HAM) executed for National Highways Authority of India (NHAI). The project completion cost is around Rs 1,354 crore. With this event, the company is entitled to receive annuity payment from NHAI every six months in accordance with the provisions of the HAM concession.