Nifty trend for Wednesday and stocks in news: Cochin Shipyard, Hero MotoCorp and Bharti Airtel

If the opening tick on Nifty didn’t surprise you on Tuesday (as it opened in the green despite the world market reeling under selling pressure), its closing would have definitely amazed you! Nifty jumped 1.03 per cent and went past the 11,850 mark. Two banking stocks i.e. Kotak Mahindra Bank and HDFC Bank contributed over half of the gains of Nifty.

Nifty opened above the 11,800 mark and it took support around Monday’s session low. After taking support, it never looked back and throughout the day, it continued its upward trajectory. The price action of the day formed a bullish candle carrying a lower shadow, which indicates that buying interest had emerged near Monday’s session low. Also, as the price was capped within the high-low of the prior session, it resulted in the formation of an inside bar.

There were not only one but a couple of positive takeaways from the bulls in Tuesday’s session. After a strong sell-off on Monday and the terrible cues from the global markets, Nifty did not breach its prior day low. Secondly, it managed to close near the day’s high; India VIX declined and lastly, it managed to hold above the 20-DMA.

Having said, if we look at the other side of the coin, it presents an uncanny picture as, despite closing near the day’s high, the overall breadth was slightly skewed in favour of the decliners. Further, on the hourly chart, Nifty retested the breakdown point of the ascending triangle pattern and the RSI, neither on the daily nor on the hourly chart, has managed to cross the 60 level. As we had mentioned in our earlier write-up that we had seen RSI turning down from the 62 mark, which indicates range shift, and on the hourly, it has failed to even cross the 60-mark since October 22. Meanwhile, we also observed the formation of a hidden positive divergence on RSI on the daily timeframe.

So overall, the picture is mixed from the technical studies. A clear trend would emerge only after the index manages to close above the 12,025-12,040 mark on the upside and on the downside, 11,660-11,620. Till then, Nifty would play in the range.  

Cochin Shipyard: Cochin Shipyard and an Italian shipbuilding company, Fincantieri, signed a memorandum of understanding for co-operation in the areas of design, shipbuilding, ship repair, marine equipment manufacturing besides, training & skill development.

Hero MotoCorp: Embarking on a new journey together, Harley-Davidson, Inc., the legendary motorcycle manufacturer, and Hero MotoCorp, the world’s largest maker of motorcycles & scooters in terms of unit volumes, announced that the two will ride together in India.

Bharti Airtel: Airtel to exit the Ghanaian telecom market.