Markets opened with a gap-up on Tuesday and rallied higher to close more than 2% with Bank Nifty outperforming by a wide margin and closing above the 39.000 mark. The 8-Bar reversal has activated a major reversal from the downtrend and the appearance of a breakout in the spread of the Nifty 50- Nifty500 Index, the gains in large-cap stocks are expected to accelerate further.
The bullish flag setup in Nifty 50- Nifty 500 which has taken almost 12 months seems to be complete now and should act as a key catalyst for Nifty’s journey towards 19,867 in the near term.
Adding to it, SGX Nifty is on a verge of a breakout from a broadening descending wedge on an hourly basis, which is placed at 17475, above which Nifty 50 may straightway hit the 19,000 mark.
Spread of Nifty 50- Nifty 500 Ind & SGX Nifty
Stocks to watch
Positive Read through
- Bajaj Finance AUM as of Sept 30 at Rs 2.18T, up 31% Y/Y; Capital Adequacy Ratio as of Sept 30 at 25.1%.
- Zee Ltd- Zee-Sony Merger Approved by CCI Subject to Conditions.
- Hexaware Technologies -Hexaware Cloud Transformation platform gets US patent approval.
- Jubilant Food Jubilant Foodworks Dutch Unit Increases Stake in DP Eurasia.
- GOA Carbon Approve raising up to INR2b via shares issue.
- IRB Infrastructure Says refinance of loan by Solapur Yedeshi Tollway project.
- Ratnamani Metals Buys a majority stake in Ravi Technoforge.
- RIL- Reliance Jio Launches Beta Trial of Jio True 5G in 4 Cities; Jio Select Users to Get Unlimited Data in 5G Welcome Offer.
- State Bank of India -Fitch Affirms State Bank of India at ‘BBB-’; Outlook Stable.
- Tata Steel Cut its stake in Oman’s Al Rimal Mining to 51% from 70%.
- Zydus Life gets the final USFDA nod and 180 days of shared exclusivity for Brivaracetam tablets.
Negative Read through
- Godrej Consumer Sees high single-digit sales growth in 2Q; Expect a mid-teen decline in 2Q EBITDA.
- IndusInd Bank Says SEBI imposed Rs 10m fine on the bank.
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