Index trend and stocks in action April 10, 2019

The Nifty recovered strongly from the low point of the day, led by realty, metals, auto and banks. Nifty recovered more than 100 points from a low point and closed higher by 67 points at 11,671. Nifty once again took support at 13-EMA and settled above the 8-EMA. As long as Nifty holds 11,500-11,488 support, there is a possibility of a bounce. Once it crosses the prior lifetime high or resistance of 11,761, there are chances of Nifty touching the psychological level of 12,000 in the medium term. As Nifty is consolidating since last four days between 11,550 and 11,710, going ahead, a breakout from this trading range would lead to a sharper move on either side. Watch these levels closely and if it closes below or above the support and resistance levels, it will lead to explosive moves. The zone of 11,500-11,550 is the earlier breakout level as well as current support. There were at least four occasions when it had bounced in recent days from the support zone. On the 60-minutes chart, the earlier support line turned into a resistance line for all day and the overall volumes were less than the previous session. These are significant facts giving some caution all the time, but these do not give the bears a chance to dominate the market. So, as long as 11,500 does not break, it is wise to be cautious about having short positions. At the same time, The general elections are very near and the Q4FY2019 results are around the corner. We are also at the highest PE levels historically. These reasons are compelling us to hesitate to give aggressive buying advice in the overall market.

Majesco: Majesco, a global leader of cloud insurance software solutions for insurance business transformation, has announced plans to unveil its new brand and vision for the future of insurance at Convergence 2019, the company's global customer conference.

IndusInd Bank: Induslnd Bank has priced its maiden USD bond issuance in the offshore public markets. The bank raised USD 400 million at a coupon rate of 3.875% per annum, payable semi-annually.

Vodafone Idea: Vodafone Idea‘s Rs 250 billion rights issue will open on April 10, 2019 and close on April 24, 2019.

Avenue Supermarts: The company has issued commercial paper of Rs 50 crore.

Praj Industries: Praj Industries will offer technology for production of high energy renewable aviation jet fuels in collaboration with Gevo USA.

Tata Sponge Iron: The company has completed the acquisition of steel business of Usha Martin.