Index trend and stocks in action November 15, 2019

The Nifty 50 index opened Thursday's session with modest gains. However, it could not sustain at higher levels and soon slipped into the negative terrain. Though it breached its prior session low for a few moments, the 23.6 per cent retracement of October 9 to November 7 high-swing supported it strongly. Thanks to that, the index could post minor gains of about a quarter of a per cent at the end of the session. On the daily timeframe, the Nifty formed a high-wave kind of pattern, with a lower top and lower bottom, indicating it to be in a minor-degree correction mode. Even though the index breadth is negative, it managed to close in positive territory with the help of HDFC and Bajaj twins, along with Infosys and ICICI Bank. On Thursday, the overall market breadth was also negative. The high volatility in the market did not make any higher highs in the shorter period chart. Thursday’s session low of 11,802 is critical for the next few days. In any case, if it closes below this level, it can test the 11,670-11,700 levels very soon. However, the zone of 11,670-11,700 is a crucial area as per the principle of polarity, which points out that once a resistance level is breached, it changes its nature and becomes support the next time it is approached. On the upside, any close above the prior bar high will take us to the prior pivot level and above.

 
Overall, the Nifty is still stuck in a range and the key takeaway from this is that both sides are batting. Investors are starting to get impatient now as it has been almost two weeks of digestion. For the benchmark index, the make or break of levels would be 11,800 and a fresh wave of momentum would only be seen if it crosses 11,980 levels on a closing basis. Till it happens, we would suggest market participants, especially traders, to play safe and become aggressive only after the markets find direction and momentum.

Cipla: the United States Food and Drug Administration (USFDA) conducted a routine cGMP inspection for both Formulations and APis at our manufacturing facility in Patalganga from 4th November, 2019 to 13th November, 2019. The inspection ended with 4 observations, none of which were repeat or related to data integrity. 

NBCC: NBCC said that the value of work has been estimated at Rs. 8,361 crores for the development of Amrapali work and the same has been informed to the Supreme Court while the work execution is in progress.

IRCTC: IRCTC hiked catering charges for meals served in Rajdhani, Shatabdi, and Duronto trains.

Natco Pharma: Commercial Manufacturing Operations begin in NATCO's Visakhapatnam Formulation Facility.

SBI: Board approved the divestment of the bank’s stake in SBI Cards up to 4 per cent through initial public offering (IPO) by way of offer for sale of up to 3.73 crores shares.

CESC: CESC Board said that the company will not pursue the demerger of the Generation Undertaking of the company into a wholly owned arm, named ‘Haldia Energy’. The company will make necessary application to Kolkata’s National Company Law Tribunal.

MOIL: MOIL Board approved buyback of about 2.02 crores shares, representing 7.87 per cent stake, at a price of Rs. 152 per share for an aggregate consideration of Rs. 308.3 crores.