Appreciation in Rupee and inflows from FII adding positive sentiments to the market: Epic Research
"Q4 result expectations of Infosys & TCS" scheduled tomorrow by Mr. Mustafa Nadeem, CEO, Epic Research.
Nifty forms a Dragonfly Doji at the lower range of consolidation indicating indecision and a possible reversal. A dragonfly Doji has a longer lower shadow with closing near to its high with a small or negligible body. The importance increases when it is seen at the extreme of consolidation or around peak or trough.
For the past few days, we have Nifty consolidating between a range of 11500 - 11700 and that is what we have seen. The derivatives data also point to 11500 - 11700 as a decisive range for short term in this expiry, for now. We believe there may be lower level buying going forward and Nifty may retreat to higher levels of 11680-11700 again.
Further appreciation is also seen in USDINR amid huge inflows in equity markets in last few weeks from FII that is acting as positive sentiment.
Q4 results expectations:
TCS - The stock is in a very tight consolidation within a range of 2000 - 2090. It has also been forming a triangle pattern with range bound trading. The recent jump in IV is seen as the results are near and the volatility is set to rise. Though we may see some writing as options writers would try to eat the premiums once the results are out. Hence we may not see a big movement in stock given the fact that it is trading between this range of 2000 - 2090 for a while. Only a decisive breakout from this range on closing basis shall give us a mid-term trend. The overall trend is primarily bullish but recent consolidation since Q4 2018 has put prices in the sideways territory. Any breach below 2000 would put pressure on TCS to test lower levels of 1900 - 1850. 2090 is a point of inflection.
INFY - Stock has seen a breakdown from the channel formed in the short term which it has been following since March. Though the trend remains largely positive as it is trading above its short term MA's for a while and a positive crossover is already seen on the daily scale. Any pullback to 720 - 715 shall work out favourably for bulls as an opportunity to enter the trend for a re test of its recent highs of 770.