Index trend and stocks in action December 19, 2019

The Nifty witnessed a follow-through buying on Wednesday and scaled another record closing high. The benchmark index has closed above the 12,200 mark for first time ever but the move to this historical level was slow and steady. It was led by the HDFC twins, with both making new all-time highs.

The price action of the day formed a small body bullish candle, with minor lower shadow. Also, it has formed a NR4 pattern, as the day’s range was of about 74 points and this range was smaller than the three previous bars.  However, one of the key takeaway from Wednesday’s session was that the broader market was not able to catch-up with the large caps and the market breadth was not encouraging. Usually, the market scaling to new heights with subdued broad based participation is not a good sign with regards to the sustainability at the highs.

On the upside, we expect the Nifty to touch levels of 12,300-12,350 in the short term and, in case of any corrective move, the index has immediate support placed at levels of 12,150 levels. Holding above the 12,150 level is crucial for the bulls. The daily MACD has shown a positive crossover. It is now bullish and trades above its signal line. Meanwhile, RSI trades at 65 level and it has not marked a fresh swing high with the index.

Overall, with Wednesday’s follow through move and the close above 12,200 mark were the final nail in the coffin of the bears. There are clear signs of bulls having the full control. However, we would advise readers to not get complacent.

NBCC: NBCC has secured the business of Rs 8,861.05 crore during November, 2019.

Lemon Tree Hotels: The company has signed a license agreement for a 44 room Hotel located at Baga, Goa, under the company's brand 'Lemon Tree Hotel' and this will be its fifth Hotel in Goa.

NMDC: The company has received the approval for modified mining plan of Kumaraswamy iron ore mines of NMDC from 7-Million Tonnes per Annum (7MTPA) to 10-Million Tonnes per Annum (10MTPA) from the Indian Bureau of Mines (IBM), Ministry of Mines, the Government of India.

Lux Industries: Commercial paper of Rs 50 crore fully redeemed and repaid on December 18, 2019.

Goa Carbon: Maintenance work at the company’s Paradeep unit has been completed and normal production is likely to resume from December 20, 2019.