Nifty trend for Tuesday and stocks in news: Tata Motors, NCC, Thomas Cook and Wipro

Halloween celebration might have ended on Saturday (October 31) but the D-Street celebrated Halloween on Monday in its own style as the heavyweight Reliance Industries seemed to be possessed by the evil (bear) spirit and as a result of which, the stock tanked nearly 8.5 per cent, making it a scary Monday for the stock.

As it’s said, ‘good always triumphs over evil’, the role of ‘good’ was here played by the heavyweight sector i.e. Bank Nifty, which recorded gains of over 4 per cent and helped Nifty to offset heavy losses registered by Reliance Industries. Thus, the above-mentioned moral of the story turned out to be true in this case.

The price action of the day formed a small-bodied candle with a long lower shadow, which resembles a hammer pattern. Moreover, as the price traded within the high-low of the prior bar, it resulted in the formation of an inside bar. If one digs deeper, it meets the criteria of uptrend type of inside bar formation as the open and close price of the inside bar is located higher than the open and close price of the mother bar. Hence, going ahead, the high and the low of Monday bar i.e. 11,725 and 11,557 levels are crucial to watch out for.

For the second straight day in a row, the bulls managed to defend the level of 50-DMA, and interestingly, the 38.2 per cent retracement of the recent upmove i.e. the 50-DMA and 38.2 per cent level is working for hand in glove for the bulls. Also, the lower end of the channel is placed around this level; so, in short, the level of 11,550-11,540 is acting like a strong wall of support and once this level is breached, it’s likely to invite incremental weakness.

On the upside, the index is hanging around or playing around the low of the big bearish bar of October 15 and as a result, the bears are also protecting their territory and not letting the bulls easily conquer this territory. We wouldn’t be surprised if the index continues to move within the range of 20 and 50-DMA for yet another day and take a directional course only after the outcome of the US Presidential Election. Also, one is sure that volatility would continue to edge higher.

In such a scenario, traders, who have the discipline to overcome their fear & greed and follow proper position sizing and stop-loss strategies, have a chance of profitability. As a wise man once said, “Egos are terrible risk managers and emotions are terrible trading signals”.

Tata Motors: Tata Motors registered domestic sales of 49,669 units in October 2020, a growth of 27 per cent over last year.

NCC: NCC has received a new order for Rs 833 crore (exclusive of GST) in the month of October 2020. This order pertains to the mining division and is received from a subsidiary of Coal India Limited. It does not include any internal order.

Thomas Cook: Thomas Cook India and its group company, SOTC Travel, have launched Freedom Month, inviting customers to avail of a host of special deals, value benefits, and flight-inclusive holidays.

Wipro: Wipro and AWS announce the launch of Wipro AWS Business Group to accelerate growth.