Nifty trend for Tuesday and stocks in news: Reliance Industries, Wipro, OIL, GE Ship and NBCC

The Nifty closed at a life-high on Samvat-2077 Muhurat trading. After opening the session at 12823, the Nifty touched a high of 12829 with this it almost touched our mentioned short term target of 12,854. The advance-decline ratio was in the favor of bulls and the India VIX slipped below 20-mark. For the last week, Nifty registered gains of 4.21 per cent which includes gains of Muhurat day.

The last’s week price action on the weekly chart formed a bullish candle which acted as a follow through move to prior week’s up-move. Interestingly, on the weekly chart Nifty has managed to close above the upper Bollinger band and that too with a sizable portion of the body of candle outside the upper Bollinger band, this is one of the rare occurrence. Further, the RSI on the weekly chart is quoting around 68 and has not yet hit the overbought level. Which indicates despite the strong move of past two weeks where the Nifty has almost gained 9.26 per cent the indicators has not yet reached overbought zone.

All the technical parameters are indicating that the bulls are in driving seat and there is no sign of weakness available in the index. The next target which looks likely to be achieved is around levels of 13,000-13,200 and on the downside major support is seen around 12,350 as long as the index is above this level the structure of the markets would remain healthy.

The Nifty-500 index has broken out of a horizontal trendline resistance and entered into uncharted territory. It gained 4.05 per cent during the previous week.  Interestingly, Nifty500 too on the weekly chart has managed to close above the upper band of Bollinger and that too with a sizable portion of the body of candle outside the upper Bollinger band this is one of the rare occurrence. As per the rule of Bollinger Band close outside the Bollinger Band are initially continuation signals. As this broader index represents 95 per cent of the market capitalisation, the mid and smallcap stocks making their comeback with a renewed energy. Component of this index is a mix of large, mid and smallcap stocks, as many stocks are making new 52-week highs every day, indicates overall smart money is accumulating the majority of the stocks. Identify the stocks which show decent earnings growth and breaking out of basing formations.

Overall be with a bullish bias and keep trailing your stop loss as targets are revised towards levels of 13,000-13,200 on the index.

Reliance Industries: Reliance Retail Ventures Limited (“RRVL”), a subsidiary of Reliance Industries has acquired equity shares of Urban Ladder Home Décor Solutions Private Limited for a cash consideration of Rs 182.12 crore. The said investment represents 96 per cent holding in the equity share capital of UrbanLadder.

Wipro: Wipro, SNP SE enter into a strategic partnership to accelerate enterprise transformation for customers globally.

OIL: Baghjan blowout well successfully killed. Fire has been doused completely. There is no pressure in the well now and the same will be observed for 24 hrs to check if there is any amount of gas migration and pressure build up. Further operation to abandon the well is in progress.

GE Ship: the Company signed a contract to buy a secondhand Capesize Bulk Carrier. The 2014 Philippines built vessel is expected to join the Company’s fleet in H2 FY21.

NBCC: NBCC secured the total business of Rs 1,165.52 crore in the month of October 2020.