Nifty trend for Thursday and stocks in news: TCS, Schaeffler India, Reliance Industries

As we all know that due to the pandemic, movies are not releasing in theaters but nevertheless, we had yet another blockbuster performance from the bulls on D-Street.

On Thursday, the bulls on D-Street performed exactly like in a typical Bollywood commercial movie. Just like in most movies, where villains play an upper hand, similarly on D-Street, the bears dominated for the majority part of the session. However, its climax was also like movies as D-street too experienced a happy ending, where the bulls had the last laugh.

Nifty advanced for the tenth straight day, which is a record in the last few years. However, this would have not been possible without Bank Nifty, as it outperformed the frontline gauges, and 10 out of 12 components of the banking index ended in the green. But the overall market breadth continued to be skewed in the factor of bears and the broader market indices failed to show any reasonable upmove.

The price action of the day formed a small-bodied bullish candle with a long lower shadow, which clearly reflects the emergence of buying interest near the crucial support area of 11,800-11,820.

In our last write-up, we had mentioned that the period of volatility contraction is followed by a sudden increase in the volatility. And, it’s quite evident from Wednesday’s range that Nifty offered traders to make money on both the sides as the day’s range was about 175 points, which is greater than the 10-day average range of 124.50 points.

There is one interesting observation on the charts. If we look at the last five trading sessions’ price action, we must have seen that most of the candle formation are indecisive in nature but if we dig deeper, we could see in most of the candles that there is a lower shadow, which specifies interest from the buyers at lower levels and this is a clear sign of buy on dips strategy. Also, Nifty has managed to hold above the gap area of October 8, and as long as this level is protected by the bulls, be bullish.

Moving on to the lower timeframe i.e. on the hourly chart, the recent price action has taken a shape of a bullish flag pattern but it has broken out of this pattern. A bull flag pattern is a continuation pattern that occurs as a brief pause in the uptrend following a strong price move higher. The leading indicator RSI on the hourly chart has managed to enter into a bullish territory and the +DMI is above –DMI and the +DMI are trending upwards, which is again a positive sign.

So overall, the trend remains in the favour of the bulls and the breakout of the bull flag pattern on the hourly timeframe indicates that the bulls are likely to continue its uptrend.

TCS: TCS recognised as the ‘US superbrand for the strength of business reputation & community impact’.

Schaeffler India: Schaeffler India launches ‘Optime’ thereby, making condition monitoring cost-effective for all plant assets.

Reliance Industries: Reliance Retail Ventures Limited (RRVL), a subsidiary of RIL, received a subscription amount of Rs 5,550 crore from Alyssum Asia Holdings II Pte. Ltd and allotted 81,348,479 equity shares to the global investment firm-KKR.