Index trend and stocks in action December 04, 2019

Yesterday, the Nifty extended its fall for the third straight day in a row, as it went on to end the day with losses of about half a per cent. The index opened the session with a modest uptick but this positive uptick was merely a formality. It gave up all its early gains in no time. As the day progressed, selling pressure aggravated and the index slipped below 12,000 mark. However, in the latter half, it took support around the 20-DMA and recoup some portion of its losses at the close. The price action formed a sizable bear candle with minor lower shadow. However, there is an important observation that Nifty had opened on a high note for third day in a row. This clearly reflects right from open that bears is knocking down the bulls.

Technically, Nifty has breached its rising trendline and closed below the important 12,000 mark. In the coming session, the opening of the index and its price behavior around the 20-DMA will be crucial to watch out. If it breaches its Tuesday’s session low (11,956), it can attract a fresh round of selling. In this case, it could slide down to levels of 11,800-11,820 and this area is a key area to watch out for in the short term. On the upside, it needs to first cross its immediate hurdle of 12,040 level and next resistance is placed around 12,140 levels.  

Overall, Tuesday’s session has given initial signs of the resurrection of the bears and, going ahead, the level of 11,956  is the key to watch out, as a move below this level would mean that the index might be heading to levels of 11,800-11,820 in the short term.  

HDFC Asset Management Company: Standard Life Investment, one of the promoter of the HDFC Asset Management Company, proposed to sell up to 2.23 per cent stake in the company via offer for sale.

NBCC: NBCC submitted revised resolution plan for Jaypee Infratech on December 3.

Yes Bank: Yes Bank sold its entire stake of 13.77 lakh shares, constituting 5.49 per cent of the paid-up share capital of One Point One Solutions.

Eris Lifesciences: Eris Lifesciences acquired trademark ‘Zomelis’ from Novartis for Indian pharma market for US$13 million.

Bajaj Finance: the Company's current exposure to Karvy StockBroking Limited (KSBL) as on December 02, 2019, is approximately Rs. 312 crores, which was against the pledge of listed shares. The company has filed an appeal before the Hon'ble Securities Appellate Tribunal (SAT) against the unilateral action taken by NSDL for release of valid pledge, created by KSBL pursuant to order of the Securities and Exchange Board of India (SEBI).