Index trend and stocks in action November 13, 2019

The Nifty opened lower and traded sideways with a negative basis for the majority part of the trading session. However, it managed to end in the green and close above 11,900 mark due to the last hour buying interest, especially in banking stocks. Among Nifty50 stocks, the market breadth was even, since half of the stocks ended in the green, whereas, the other half stayed in the red. The price action formed a small body bull candle near 8 EMA. In the last 20 days, the benchmark index took support around 8 EMA for the eighth time, which is a rare phenomenon. Further, the trendline, plotted from the lows, is acting as support for at least three-four times from September 19. The 23.6 per cent retracement level of the last 20 days rally is placed at 11,811 level. If we sum-up the above observations, it suggests that the zone of 11,800-11,850 is a crucial support zone.
 
Going forward, if this support zone is breached on the closing basis, the market may witness a massive long unwinding or a fresh wave of selling pressure. The recent up move of the Nifty stalled near the 12,000-12,050 area and this area is likely to act a resistance zone for the index in the near future. A fresh wave of momentum is expected, once these levels are taken out on the upside.
 

Overall, the bias remains positive as long as the Nifty holds above 11,800 mark and traders should adopt buy on dips strategy. The index is likely to consolidate in the range of 11,800-12,050.

Lupin: The company to sell the entire stake in its Japanese arm, Kyowa Pharma, to Plutus at enterprise value of JPY 57,257 million.

Tata Power: Tata Power to develop 50 MW at Dholera Solar Park in Gujarat.

Wipro: The company announced the successful implementation of SAP S/4HANA software for Sydney Water, a statutory state-owned corporation, wholly owned by the New South Wales Government.

Escorts: Farmtrac unveils Hybrid Concept Tractor at Agritechnica 2019 .

Avanti Feeds: A search of premises of Avanti Feeds Ltd. and its subsidiary, Avanti Frozen Foods Private Limited, by the Income Tax authorities under Section 132 of the Income Tax Act, 1961, was conducted from November 7 to 11, 2019.

Indian Hotels: The Board approves buying balance 14.28 per cent in ELEL Hotels for Rs. 250 crores.