Index trend and stocks in action November 27, 2019
Jack and Jill, the protagonists from one of the famous nursery rhymes, seem to come alive for what happened in the markets on Monday. The 50-share index, Nifty, went up the hill in the initial phase of the session and registered a new all-time high of 12,132 but failed to capitalize on the initial gains later and came down tumbling in negative terrain at the end of the session. At one point in time, it declined 125 points from the day’s high. Though a mild recovery was seen in the dying hour of the trade, which resulted in it ending the day with a net loss of 36 points.
The price action of the day formed a bearish candle and it has also formed a classical double top pattern as after moving past the previous lifetime high of 12,103, the index slipped below this level. Further, the Nifty added a distribution day as the index declined by more than 0.20, with volume higher than that of the previous session.
In the coming session, the opening of the Nifty and its price behavior around the 12,000 mark will now be crucial to watch. In the last three weeks, the index was seen consolidating in a range, where the upper end of the range, that is, 12,000 mark was acting as a stiff resistance. On Monday, there was a breakout from this range; however, the index failed to witness a follow-through. Hence, the 12,000 mark is still crucial and needs to be watched out.
All-in-all, holding above the 12,000 mark would be important for the bulls to continue the momentum. If the Nifty fails to hold above the 12,000 mark, there are chances that it may get back into the consolidation phase in the near term with higher volatility.
CONCOR: Container Corporation of India has signed a settlement agreement with Kohinoor India by making a total payment of about Rs. 9.18 lakh. Parties have also undertaken that they shall not file any other claim/suit/petition in any Court with respect to the dispute. The existing Petition, which is pending before the Hon’ble NCLT, New Delhi, is now likely to be dealt with in accordance with the above settlement agreement, reached among the parties and the case is expected to be close.
L&T Finance Holdings: The committee of directors to approve raising funds through proposed issue, aggregating up to Rs. 60 crores and issue price for the proposed issue on November 29, 2019.
Seamec: the company's subject vessel "SEAMEC PRINCESS" has been contracted with M/s. Posh Subsea Pte Limited for working at Mumbai High Offshore. The tenure of the Contract is for a firm period of 180 days with option of extension. The value of charter during firm period is US$4.86 million.
Max India: The divestment of entire equity shareholding of the company in Pharmax Corporation Limited has been completed on November 25, 2019 and the company has received Rs.60.73 crores as the consideration for the said divestment.
HCL Technologies: The record date for determining the entitlement of the equity shareholders of the company for the bonus shares has been fixed for December 7, 2019.