Index trend and stocks in action November 22, 2019
Just like in the previous one, the Nifty opened the session on Thursday with a gap-up above the 12,000 mark but it lacked follow-through buying and for the majority of the day it traded in a listless mode. However, in the latter half of the session, the markets witnessed a reversal in sentiments and closed in the negative terrain. The good thing was that the markets decline on a slightly lower volume. The benchmark index is trading in a 240 point range (11,800-12,040) for the last 15 trading sessions. There have been several indecisive and bearish bars in this period and the overall market breadth is not improving as yet.
On Thursday, though volatility was on a lower side compared to the past, the Nifty made a bearish engulfing candle-like pattern. Before that, almost all the bars in the week were bearish or indecisive. The index filled Wednesday’s gap and closed near the lower support. Since it is unable to sustain above the resistance area or close above 12,000, it is the time to be cautious about the uptrend. Also, there is a serious negative divergence in RSI. However, there is no clear signal for the bearishness.
The Nifty has made two similar tops but the RSI has made a lower top on a daily chart. In any case, if the RSI falls below 57 levels, expect a bearish move in the market. The MACD histogram is negative for the last one week. Keep a watch at 11,800 levels on downside and 12,040 levels on the upside. If this range breaks, the market may witness a sharp move on either side.
Laurus Labs: The company is pleased to announce that it has completed the USFDA pre-approval inspection (PAl) for an API manufactured at its unit 1 and unit 3, located at J N Pharma City, Visakhapatnam, Andhra Pradesh, with three observations, which are procedural in nature and no data integrity issues were observed in the inspection.
Tata Power: Tata Power raises Rs 1,500 crores via NCDs.
Bank of Baroda: Bank of Baroda, South Africa, has issued an statement, saying that it is not indulged in any activity that violates regulatory guidelines knowingly. Transactions were carried out in a professional and transparent manner and it is totally committed to comply with rules and regulations laid out by the governing bodies and regulators.
Finolex Cables: Finolex Cables Limited, India's leading manufacturer of electrical and communication cables has introduced fast-moving range of electrical wire accessories, such as Door Bell, Extension Box, Spike Guard, Angle Holders, and Batten Holders, to satisfy the growing demand for quality electrical products.
RITES: The Centre proposes to sell 2.5 crores shares of RITES, representing 10 per cent of total paid up equity capital of the company. It has an option to additionally sell up to 1.25 crores shares in case of oversubscription.