Index trend and stocks in action November 21, 2019

Despite the weakness in the Asian peers and the SGX Nifty indicating a negative start, the bulls kicked off Wednesday’s session in a flamboyant style, with the Nifty50 index opening the session above the important psychological 0f 12,000 mark. The index pivotal, Reliance Industries, played an important role in yesterday's session. It opened with a gap-up as a result of the announcement that its telecom subsidiary, Reliance Jio Infocomm, will raise tariffs in the next few weeks. Soon after opening, the index extended its gains, crossed swing high of 12,034, and marked a fresh swing of 12,039 on November 20, 2019. However, during the latter half, the index came down a bit from higher levels and eventually closed below the 12,000 mark. This complete price action of the day resulted in the formation of a Small Negative Body candle with almost identical open and close. In candlestick terms, such patterns are referred to as Doji candlestick pattern.
 
The Nifty has been trading in a range of 11,800-12,040 over the last 13-14 trading sessions.  During this time, it was at least 4-5 times that the index attempted to overcome the 12,000 mark on a closing basis. Although it did manage to do so on November 07, it was negated with a bearish formation on the charts. Furthermore, there has been a formation of multiple indecisive candles around the 12,000 mark and the market breadth has been not so encouraging while attempting a breakout. Even on a positive day like Wednesday, November 20, when the benchmark index posted 59 point gains, the breadth was negative. However, despite the overall negative market breadth and the flow of negative news in the form of downgrades of India’s GDP growth by financial institutions, the index was able to hold the crucial support level of 11,800. Interestingly, this is also the gap area of October 20. Even though the gap is filled now, the index has been sustaining itself above the mark on a closing basis. For the next few days, this area of support is critical for the market. Structurally, if the Nifty closes below the 11,800 mark, it will have a downside implication of about more than 200 points.

In a nutshell, since the Nifty has not achieved a clear and decisive breakout with strength, we reiterative that traders should play out this range of 11,800-12,040 unless a firm and confirmed directional bias is established.

Jubilant Life Sciences: Company has announced that Ministry of Commerce  (MOFCOM), People’s Republic of China, vide an announcement dated  today has decided to terminate the 17.6 per cent anti-dumping duty on imported pyridine originating in India.  

Oil India: Oil India Limited commences 2D Vibroseis Seismic Survey operations in its OALP-I Block.

DHFL: RBI issues order for the supersession of the board of director’s company; RBI appointed R. Subramaniakumar as its administrator with immediate effect.

GAIL: Supporting the 'Swachh Bharat Abhiyaan' campaign in the city, GAIL (India) Limited today handed over seven tippers (dumpers) and 142 tri-cycle carts to the Chandigarh Municipal Corporation (CMC) in the presence of Shri Sanjay Tandon, GAIL Independent Director.

Tata Motors: The company has raised US$300 million by the allotment of the Notes in the international markets.

Dilip Buildcon: Dilip Buildcon has received provisional certificate of completion for HAM Project in Maharashtra. Scheduled completion date was May 28, 2020.

ZEEL: The Essel Group is planning to sell -16.5 per cent stake in ZEE Entertainment Enterprises Limited to financial investors.