Index trend and stocks in action December 27, 2019

The Nifty lost 88 points over the day and closed at 12,127. The index started on a flat note and stayed sideways in the first couple of trading hours. However, in the second half of the trading session, fresh selling emerged and resulted in the session closing near the day’s low. It was a day clearly in favour of the bears. The price action of the day indicated a sizable bear candle, carrying lower high and lower low. Thursday’s session candle's bear body is bigger than the prior bar body, which points towards more pressure by market participants on the downside during the session.  

Technically, with Thursday’s fall, the Nifty has retraced about 38 per cent of the recent up move and has closed below the 8EMA as well. If we analyze the fall of the last three trading sessions, the index has lost near about 170 points from its lifetime high. Going ahead, 12,060-12,078 is a crucial support zone, as it is a confluence of 20-DMA and 50 per cent retracement of the current leg of up move. In case of the failure to hold above this support level, the index is likely to fall back into a consolidation range, which it had traded earlier for quite long. Moreover, it may go on to test the lower end of the range, that is, 11,800 levels.

The RSI turned down to 55 levels and MACD line is also about to cross under the signal line. The Nifty falling below the prior breakout level is the first sign of weakness and failed breakout. As of now, it is better to have a cautious approach on the long side.

Biocon: The company has incorporated a wholly owned subsidiary company and named it Biocon Biosphere Limited.

Allahabad Bank: Fresh capital infusion of Rs 2,153 crore has been done in the bank by the Government of India.

Bharat Forge: The company announced the incorporation of a wholly owned subsidiary, named Kalyani Centre for Precision Technology Limited, in Indapur.

Sical Logistics: Sical Logistics delayed the payment of semi-annual interest, payable on the 11 per cent redeemable NCDs listed with NSE for sole debenture holder, which was due on December 27.