Index trend and stocks in action November 01, 2019

The final trading session for October was beautifully set up as the US Fed slashed interest rates by a quarter-point, the third time this year, sending S&P 500 to record high. Also, cues from Asian markets were supportive and gave the bulls a firm pitch to bat on. Nifty opened with its head held high and, in no time, bulls raced past 11,900 mark. After this, the benchmark index rose gradually to mark a fresh swing high of 11,945 levels. However, all of a sudden, volatility sparked in and Nifty started to rapidly give up its gains and lost nearly about 65 points from the day’s high. The October monthly derivative expiry and the news floating in the media about ‘China doubts about a long-term trade deal with the US’ played huge roles in this, leading the index to close near its opening levels. However, it clocked gains for the fifth straight session even after this. The price action for the day formed a Doji-like candlestick pattern. The formation of indecisive candle hints that the bulls must be exhausted and Nifty may enter into a consolidation phase before moving on to our final target of 11,980 levels.

Nifty has recovered 90 per cent from the June-September fall and is just at an arms-length to its lifetime highs. Another benchmark index, BSE Sensex, has already crossed the earlier highs and created a new history. Sentiments are high on the street. As the market breadth is improving continuously and the number of stocks, hitting a 52-week high, is increasing, the markets look optimistic for a new high on Nifty as well. However, our investigation on the chart suggests that the bulls may take a pause/rest and Nifty may consolidate. Among the factors that support this stance is that the index has halted its move near to the upper end of the channel on the hourly time scale. Moreover, we have observed a negative divergence on RSI. Hence, traders can wait for dips to enter the market and the level of 11,720-11,750 is an ideal point to enter since it is a good support for the index. Nifty crossing its October 31st level could open gates for the magical mark of 12,000 and above.

IndusInd Bank: the Board of Directors of the Bank, at its meeting held on October 30, 2019 has finalised a potential candidate for the position of MD & CEO.

DLF: The company has informed exchange that it has made timely payment of interest on NCDs.

Aster DM Healthcare: Aster DM Healthcare to acquire 80 per cent stake in Dubai’s Premium Healthcare consideration amounting to approximately AED 9 million.

Jai Prakash Power Ventures: Board approved conversion of a part of Canara Bank's outstanding loans, amounting to Rs 12.02 crores, into compulsory redeemable preference shares and Corporation Bank's outstanding loans, worth Rs 22.5 crores, into a long-term instrument/NCD.

Vodafone Idea: The company clarified that it is not aware of the news of Vodafone Group exiting from the India operations and denied that the company has gone to its lenders for a debt recast.

SRF: SRF has commissioned and capitalised a facility to produce agrochemical intermediates at Rs. 166 crores.

Prakash Industries: The company has expanded the installed capacity in its Steel Melting Shop (SMS) by commissioning four new energy efficient induction furnaces. The enhanced capacity now stands at 1.176 million tonnes per annum.

Hero Motocorp: Hero MotoCorp, the world’s largest motorcycle and scooter manufacturer, has crossed yet another milestone in its illustrious journey, with its manufacturing facility at Haridwar, Uttarakhand, achieving the unique distinction of surpassing 25 million units in the cumulative production.

Aarti Drugs: Aarti Drugs incorporates a marketing subsidiary in Chile and named it 'Pinnacle Chile SpA'.