Index trend and stocks in action December 03, 2019
Yesterday, the Nifty saw a better-than-expected start to the day courtesy Reliance Industries, the index heavyweight. Reliance's stock saw a gap-up opening on the back of the news of raise in tariffs by telecom companies. However, the index failed to build upon the early gains and soon pared it all. Thereafter, the index slipped in negative terrain and spent the entire session in a defined range. Finally, it ended the session with modest losses of 0.07 per cent. The price action of the day formed a sizable bear candle, which is placed beside the Bearish Belt Hold like pattern, formed on Friday. Technically, this pattern indicates a formation overlapping candle, which signals a range bound action in the index.
In the coming sessions, the zone of 11,970-12,000 would be a crucial support level as per the concept of change in polarity. The 20-DMA is also placed in this region. At present, the Nifty is trading less than one per cent above its 20-DMA but, if the 20-DMA is breached and the distribution counts increases, it will command cautiousness. The index formed about two distribution days in the last week and the current distribution count stands at four.
The daily 14-period RSI is placed at an important level, that is, 60 and a decisive breach of 58-60 mark could be a worrisome sign in the coming session as the negative divergence will get confirmed.
Going forward, the zone of 11,970-12,000 would be a crucial support zone. For the bulls to resume its uptrend, it needs to sustain above the identical high of previous two bars, which is placed between 12,137 and 12,147 levels.
Biocon: Biocon and Mylan Launch Trastuzumab Biosimilar, Ogivri (trastuzumab-dkst), in the U.S. This FDA-approved product, co-developed by Biocon Biologics and Mylan, was unanimously recommended by the FDA Oncologic Drugs Advisory Committee.
RBL Bank: RBL Bank has opened its QIP. The board will meet on or after December 5 to consider the issue price. The floor price has been set at Rs. 352.57 per share.
IFCI: IFCI has now received bids for sale of its entire stake in NSE.
United Spirits: United Spirits board approved the merger of the company’s listed arm, Pioneer Distilleries with self.
Aurobindo Pharma: Aurobindo Pharma’s shareholders approved the merger of six arms of the company with self.
Bank of Baroda: The meeting of the Capital Raising Committee (CRC) of whole time Directors of the Bank is scheduled to be held on December 5, 2019, to consider raising of capital funds through issue of capital debt instruments.