Nifty trend for Wednesday and stocks in news: Bharti Airtel, AU Small Finance Bank, Ajanta Pharma and Uflex

During Monday’s trading session, we had observed the bulls' warming up while on Tuesday, they came out with blazing guns as they reclaimed the important psychological level of 11,800. The bulls were in a driving position right from the very beginning as we had witnessed a gap-up opening and thereafter, it went from strength to strength and finally settled near the day’s high.

The price action of the day formed a bullish candle with a gap-up and the gaps remained unfilled. Even though the index had managed to open above the range of the last three candles’ and closed near the day’s high, it’s back inside the larger range between 11,660 and 12,025. Further, the bulls took a pause around the 20-DMA, which is placed right near the mid-way of the big bearish bar of October 28. Thus, the opening of the index on Wednesday as well as the price action thereafter would be crucial to watch out for.

Either we might open with a gap-up above the 20-DMA and extend the move towards the upper band of the channel, which is placed in the region of 12,040-12,065; or on the other hand, we may open with a gap-down and it would mean that the current up leg was just a pullback to 20-DMA and in that case, we would go on to test the levels of 11,500.

The RSI on the daily chart has reached right at the channel resistance point, while on the 60-minutes chart; it has touched the 60-mark. Interestingly, the +DI line has crossed above the –DI line.

Overall, the bulls have reached near the point of resistance and now it’s up to the cues from the West, which would dictate the trend in the near term.

Bharti Airtel: Bharti Airtel announced that its subsidiary, Nxtra Data Limited, has signed a memorandum of understanding (MoU) with Maharashtra Industrial Development Corporation (MIDC) for setting up of two new data centre campuses in the state. The new facilities will come up in Mumbai and Pune, respectively.

AU Small Finance Bank: The bank has entered into an agreement with Care Health Insurance Company for health insurance products.

Ajanta Pharma: The company approved buyback of shares at Rs 1,850 not exceeding 7,35,000 shares, which represented 0.84 per cent of the total number of equity shares in the paid-up share capital of the company.

Uflex Limited: CRISIL reaffirmed the long-term credit rating at A/stable and short-term rating at A1.