Index trend and stocks in action December 26, 2019

The bears put a foot in the door on Monday and continued to show their dominance on Tuesday, with the Nifty closing down by 0.39 per cent at 12,215. The dominance of bears was also visible from the fact that, despite bulls enjoying an upper hand in the initial part of the trading session, they were not able to push price beyond the prior bar high. Moreover, the index closed below its 5DEMA and also near to the lowest point of the day.

On the daily timeframe, price action formed a bear candle; the size of the candle body is relatively greater than a previous couple of candles. Further, the formation of a bear candle with a relatively big body near the stiff resistance of 12,300 demonstrates the significance of this level as a probable point of resistance.   

In the coming session, the immediate support is seen around 12,184 level, as it is a confluence of 23.60 per cent retracement and 8-DEMA. Holding above this level would be positive for the index while a slip below this level would open gates for further correction towards levels of 12,100 and 12,060.

Overall, we recommend readers to involve in stock-specific trading and avoid trading aggressively at the current juncture, as the lack of momentum on the upside and not so encouraging volumes since December 9 indicates that the upside may be limited.  

Bharti Infratel: Bharti Infratel and Indus Towers merger long stop date extended to February 24, 2020.

GAIL: GAIL has clarified that it is neither in the process of hiving off its pipeline business into a separate unit nor it has received any directive in this regard.

HCL Technologies: HCL Technologies announces expansion in Canada with a Global Delivery Center in Moncton, New Brunswick.

Lupin: Lupin's Ankleshwar facility has won the Frost & Sullivan's India manufacturing excellence awards 2019.

Bharti Airtel: Airtel Africa Plc, a subsidiary of the company, has announced the price for its listing on the Malawi Stock Exchange. The company will divest 20 per cent stake at US$0.02 per share, aggregating to US$37.5 million, to meet relevant norms.

TVS Motor: TVS Motor launches TVS NTORQ 125 Race Edition in Nepal.