Nifty trend for Wednesday and stocks in news: Infosys, TCS, SBI Card, BEL, and Wipro

On Tuesday, the plot of bulls on D-Street was similar to that of any sprinter who, after a quick run, stands for a few moments to catch his breath. The index traded within a narrow range of 99 points, which is below the 10-day average. Nifty managed to close just above the neutral line, courtesy Nifty IT index, which gained over 1 per cent as 8 out of 10 components of the index closed in green.

The price action of the day formed a Doji candlestick pattern as closing was near the opening level. Further, the low of the prior bar was protected and thus, there was a formation of a higher low as compared to its prior bar while the high was lower than the previous bar’s high, which resulted in the formation of an inside bar (ID). Also, the daily range of the candle was 99 points, which is the lowest in the last seven bars, and hence, this was an NR7 bar. So summing up all the patterns above, Nifty has formed an ID/NR7/Doji. The formation of this pattern indicates a day with low volatility as well as a contraction. In addition to this, there is a contraction witnessed on the 60-minute timeframe as well as Bollinger Band contracting. And according to Toby Crabel, the low level of volatility is often followed by a sudden increase in the volatility and a directional move.

Hence in the coming trading sessions, the high and low, which stands at 11,988 and 11,889, respectively, is crucial to watch out and as per the rule, break on either side of the range could result in a trending move. Hence, we would advise taking directional bet for intraday only on the break of the above-mentioned levels. A break below the level of 11,889 would open up the gate for a correction towards the levels of 11,805-11,790 while, on the upside, a break above the level of 11,988 would open up for further upmove towards 12,040-12,120.

Infosys: Infosys got positioned as a leader in Gartner’s Magic Quadrant for IT services for Communications Service Providers, Worldwide.

TCS: BPO analyst firm, NelsonHall Limited refers to TCS as a leader in customer experience services in telecom and media.

SBI Card: SBI Card, India's largest pure-play credit card issuer is all set to add to the festive cheer of its cardholders, this festive season. With 1000+ offers across 2000 cities, especially curated to meet the changing trends and consumer preferences along with 581 card endeavours, would bring customers, a rewarding shopping experience on their festive season purchases.

BEL: BEL bags ICC PSE Excellence Award for Corporate Governance.

Wipro: Wipro to acquire Eximius Design for strengthening leadership in VLSI and systems design services. Further, the company approved a buyback plan, subject to the approval of shareholders as the buyback price is Rs 400 per equity share, payable in cash for an aggregate amount of around Rs 9500 crore.