Index trend and stocks in action December 20, 2019

The Nifty opened the session almost flat and displayed a corrective move initially and, thereafter, hovered back and forth around the 12,200 mark. However, the benchmark index recovered from the low point of the day and moved higher to close at a fresh record high, that is, at 12,260 levels, up by 0.31 per cent. The price action formed a bull candle with minor lower shadow.

Going ahead, the Nifty will try to achieve the next possible target of 12,350-12,400 levels. As long as the index is able to protect the prior day low, it is advised to hold the long positions with a trailing stop-loss. The leading indicator RSI (66.95) has broken out of downward channel and is near to the prior swing high of 68.78. The MACD has given a fresh buy signal by moving above the signal line on Wednesday. The momentum is built up with a continuous buying interest from the FPIs.

As the Nifty is trading in an uncharted territory, there is no weakness visible in any trade set up or technical parameter. In these conditions, the best strategy would be running the long positions with a trailing stop-loss of prior day low. In any case, if the index closes below the level of 12,150 then we might witness a short-term corrective move.

Dishman Carbogen Amcis: The officials of Income-Tax Department have visited the company's head offices and manufacturing sites in connection with the search under Section 142 of the Income Tax Act on December 19, 2019, and the search enquiry is continuing. As a law abiding corporate, the company is extending its cooperation in this regard.

Lupin: Lupin's alliance partner Concord receives approval for Mycophenolic acid delayed release tablets USP.

JM Financial: The board approves raising up to Rs 850 crore and increasing FPI investment limit to 40 per cent from 24 per cent.

Bajaj Finance: The company invoked pledged shares of Karvy Data Management Services to recover dues from Karvy Broking.

Lemon Tree Hotels: Lemon Tree opened first international hotel in Dubai under the company's brand 'Lemon Tree Hotel'.

NMDC: NMDC is allocated with two coal blocks in Jharkhand State.