Index trend and stocks in action November 08, 2019
Finally, the Nifty witnessed some solid performance and closed above the psychological level of 12,000. This time, the journey to 12,000 levels was slow and steady unlike, the last two occasions, when the move was euphoric. It took three consecutive attempts for the benchmark index to close above the prior higher swings. However, it is forming not-so-bullish candles or indecisive bars almost every day. The market, even though moving up, looks tired with these bars and, rather than positive triggers, it is waiting for a negative one. From November 1ST till now, the Nifty has gained 134.60 points or 1.13 per cent.
The price action on Thursday formed a Dragonfly Doji-like candle pattern while it maintained its rhythm of higher high and higher low. Recently, the Nifty took support at 8EMA. It is just about 90 points away from its lifetime high. In general, the breakout of the three-day tight base is supposed to be a bullish sign. Here, it indicates that the index may touch a new lifetime high. Nonetheless, we expect a meaningful correction as it is in an overbought condition and 900 point rally form the October lows. After crossing the 12,100 levels, it may witness a corrective consolidation before scaling up to new highs. Hold the long positions as long as the previous day's low is protected. Bear in mind that the sell opportunities will come only below 11,800 levels. Till then, it will be better if you avoid short positions and adopt buy on dips strategy as long as 11,800 is intact.
Reliance Industries: Reliance Strategic Business Ventures has acquired more shares in SkyTran Inc. to increase its shareholding in the company to 17.37 per cent on a fully diluted basis.
Federal Mogul: SAT upheld an open offer price of Rs. 608.46/share.
Bajaj Finance: Bajaj Finance has set the issue price at Rs. 3,900 per share.
Raymond: Raymond Limited restructures its business for value creation - demerges its core Lifestyle business to be listed as a separate entity.