Nifty trend for Thursday and stocks in news: Indian Hume Pipe, Hero MotoCorp, Infosys and Metropolis Healthcare

Nifty continued with its spectacular run on Wednesday as it recorded gains for the eighth day in a row. After starting the day on a positive note, Nifty witnessed some turbulence in the afternoon session and at one point, it was trading in negative terrain, courtesy, landslide fall in the index heavyweight i.e. Reliance Industries. However, the news of de-escalation of tension between Indian & Chinese militaries in the eastern Ladakh acted as music to bulls’ ears, and as a result, Nifty leaped forward in the second half of the trading session. At close, Nifty hits fresh record closing high by gaining 0.93 per cent.

The price action of the day formed a bullish candle with a long lower shadow. Nifty rallied almost 10.70 or 1,234 points from the lows of 11,535 and with this, Nifty is now a stone’s throw away from our earlier mentioned target, which stands at 12,854.

Nifty continued its higher high-higher lows formation for the seventh straight session. Despite the high optimism on D-Street on the back of positive development on the COVID-19 vaccine and de-escalation of tension between India & China, we would advise our traders to adopt a cautious approach as some of the time-proven technical studies are indicating the same.

There is a concept of record session count i.e. when a candle session makes a higher high, the Japanese call it a record session high. In this record session count, eight to ten record sessions are of utmost importance; in Nifty, we are nearing the threshold of eight sessions. And as per the theory of record-high sessions, a trader must stop buying aggressively after eight to ten record session highs. Further, the last impulse move, which had begun from September 24 to October 15 had moved about 1,235 points and with Wednesday’s move, the current rally too had moved 1,234 points. And as per the concept of price parity, the current upmove has met the projected target.

Having said this, it doesn’t mean that it’s prudent to create a short position in the index but definitely, it’s advisable to take the partial profit off the tables and keep trailing stop-loss for all your long positions. The key level to watch out for on the upside is 12,770; if Nifty sustains above this level, it may test our target of 12,854 on the upside. However, a failure to pierce this level would mean that the index may witness a consolidation phase where the 12,550 level would act as immediate support.

Indian Hume Pipe: The estimated balance value of the work as of October 31, 2020, is Rs 4,234.41 crore as against Rs 4,011.25 crore as of October 31, 2019.

Hero MotoCorp: Following successful partnerships with state police departments across the country, Hero MotoCorp, delivered 751 units of Hero Glamour BS-VI motorcycle to Karnataka’s police department.

Infosys: Infosys wins 2 diamond awards, the highest category of recognition, at the 23rd Annual Marketing Excellence Awards 2020 programme of Information Technology Services Marketing Association (ITSMA).

Metropolis Healthcare: Metropolis has conducted the maximum number of COVID tests in Q2FY21 in the industry. Scale-up in non-COVID tests along with a focus on cost optimisation has helped the company to achieve a record EBDITA margin at 32.9 per cent.