Index trend and stocks in action December 06, 2019
The Nifty opened the session with a positive bias ahead of the monetary policy outcome but volatility soon kicked as RBI maintained status quo on policy rates in its fifth bi-monthly monetary policy review of this financial year. Thereafter, the index bounced back from lower levels but the recovery did not sustain and, eventually, it ended the day with moderate losses. The price action formed a bearish candle.
On Thursday, the Nifty faced resistance exactly at 61.8 per cent retracement of the recent fall and it closed below the 8-EMA. However, it managed to defend its crucial short term moving average, that is, 20-DMA. Technically, the index is forming a bearish belt on the weekly chart. Unless the index moves above this week’s opening level (12,137), the market will continue to try to consolidate on a lower side. The leading indicator broke the critical support of 59. The MACD histogram declined further with Thursday’s fall. The Stochastic Oscillator also fell below the prior swing after a prolonged overbought condition. There are serious negative divergences visible in all major indicators. Now, on the upside, 12,137 works as stiff resistance and, on the downside, 11,900 will act as short-term support. In any case, a fall below 11,900-11,880 will take the index towards the 11,800 levels. Considering the current structure, we would suggest that you should keep positions at sensible levels and avoid taking any aggressive positions unless the Nifty establishes any directional bias. For long positions, we would recommend following a strict stop loss of 11,880.
Greaves Cotton: The company has acquired the balance 5,000 equity shares from Ms. Hemalatha Annamalai in Ampere Vehicles Private Limited.
Yes Bank: Moody's Investors Service has downgraded Yes Bank Limited's long term foreign currency issuer rating to B2 from Ba3.
Narayana Hrudayalaya: Narayana Hrudayataya Limited's plan to establish a 130 bedded hospital project in Nairobi, Kenya, announced in 2016, could not proceed with due to the inability to fund the project by a financial institution partner.
Sadbhav Infrastructure Projects: Sadbhav Infrastructure Projects’ arm has canceled concession agreement with NHAI due to the non-availability of required 80 per cent of the right of way by NHAI within stipulated time period. The agreement will be treated as terminated with mutual consent of the parties without any outstanding claims on each other.
Tata Motors: At their Meeting, the Allotment Committee, authorized by the Board of Directors of the company, has approved the allotment of 20.16 crores ordinary shares at a price of Rs. 150 each and 23.13 crores warrants, with each warrant carrying a right to subscribe one ordinary share per warrant, at a price of Rs. 150 per warrant to Tata Sons.
Bank of Baroda: The Board approved raising of funds up to Rs 1,850 crores in Tier-I bonds.