Nifty trend for Thursday and stocks in news: TCS, Bata India, Trigyn Technologies, Hero Motocorp, Persistent Systems and GPT Infraprojects

There is an old saying, the amateurs decide where the market opens, but the pros decide where it closes. The Nifty begun Wednesday’s session on a soft note and marked a low of 12,819 in the first half of trading session. And, as we had mentioned in our previous write up that the dips would attract buying and this is what we had witnessed on Wednesday session.

The pros bought the dips and Nifty staged a smart rally to close near the day’s high. Nifty managed to rebound over 120 points from the intraday low and for the first time ever it closed above the 12,900 mark. Interestingly, the FII continue with their buying streak as they turned net buyer to the tune of Rs 3,071.93 crore taking total tally of inflow to Rs 41,209.63 crore month till date.

The price action of the day formed a bullish candle with a minor lower shadow and it managed to close above the prior day’s high. With this Nifty is nearing to our target of 13,000-13,220. On a rising day, the falling of India VIX is a satisfying sign and on Wednesday the India VIX dropped 2.73 per cent.

Let’s deep dive into technical indicators what they are indicating at current juncture. The index is in an extreme overbought condition as the RSI is at 78.66, and the MACD is at a historically high level on a daily chart. Generally, longer, the distance from the zero line indicates overbought in the market. Even though the Nifty is closing higher, the histogram, which shows the momentum, is declining for the past five days. This is not a good sign for the index.

Further as the Nifty is nearing the pattern targets, the upside move could be limited from the current levels. It may test 13000-13200 levels, but beyond this point it is challenging to forecast. The upward channel resistance placed at similar levels. The +DMI, which shows the positive momentum, declined on a rising day, means another warning signal for the bulls.

The Midcap-100 index gained for 15th straight session, resembling 2017 Bull Run of midcap. This longest stretch of positive closings is rare in recent history. Currently, the Midcap-100 index is trading 7.03 per cent above the 20-DMA. This also shows the extended rally. In recent history, the benchmark index did not go beyond 7.22-8.21 per cent.

We continue to reiterate that Bulls are in driver seat and we cannot be bearish as long as Nifty does not close below its prior bar low. Till then we don’t advise to our reader to take contra trade and continue to adopt a buy on dips strategy.

TCS: The members of the Company have approved the Buyback by passing a special resolution through postal ballot. The Company has fixed Saturday, November 28, 2020, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the Buyback.

Bata India: The proposed Scheme of Amalgamation between Coastal Commercial & Exim Limited (CCEL) (a wholly owned subsidiary of BPL) (“Transferor Company”) and Bata Properties Limited (BPL) (a wholly owned subsidiary of Bata India Limited) (“Transferee Company”), has been approved by shareholders.

Trigyn Technologies: Company has informed that the contract of their wholly owned subsidiary Trigyn Technologies Inc., with the United Nations for the provision of information and communication technology staffing support at the UN Missions and other UN offices is now extended for twelve (12) additional months and will now expire on 31 December 2021.

Hero Motocorp: The world’s largest two-wheeler manufacturer - sold more than 14 lakh units of motorcycles and scooters, in retail sales during the just concluded festive season, thereby continuing to gain market share and strengthen its leadership.

Persistent Systems: Persistent Achieves AWS Financial Services Competency Status.

GPT Infraprojects: GPT Infraprojects announced that the company has bagged an order valued at Rs 162.83 Crore.