Index trend and stocks in action October 01, 2019

On Monday, the first half of the trading session was completely dominated by the bears as after a weak start Nifty slid lower and took support around its 100-DMA and September 23 gap area. In the second half of the session, a rebound was seen from lower levels and Nifty closed within striking distance of the open of the session. The price action formed a small body candle with a long lower shadow, resembling a hammer pattern. The September 23 gap has almost been filled after five sessions of its formation. In the coming sessions, all eyes will be on the low of Monday’s session (11,391) and the 100-DMA (11,409) that have been providing a cushion effect to the bulls. The zone of 11,380-11,410 has been acting as a strong support zone and in the last five trading sessions or so the bulls have managed to defend this support level. 

However, despite a rebound from the lower levels, Monday’s trading session qualifies as a distribution day and is the first one in recent times. A distribution day occurs when an index falls 0.25 per cent or more on volume higher than the previous session. Distribution days will certainly weaken the market. Hence, going forward we also need to monitor distribution day count and if the count increases we might need to approach markets cautiously. Bottomline for the traders: In the near term the support zone of 11,380-11,410 could decide the fate of the markets. Any close below this support zone and the current corrective phase may extend towards levels of 11,250 where the 200-DMA is placed.

Credit Access Grameen: The company has completed a direct assignment of Rs 132.46 crore on September 30, 2019. This is the second direct assignment transaction initiated during the financial year 2019-20. With this transaction, the company has completed one securitization and two direct assignment transactions totalling Rs 381.70 crore in 2019-20.

Motilal Oswal Financial Services: Motilal Oswal Home Finance Limited (MOHFL), material subsidiary of the company, has entered into an assignment agreement dated September 30, 2019 with Phoenix ARC Private Limited for upfront sale of pool of non-performing assets (NPAs) of the company. Pursuant to the said agreement, MOHFL has sold a pool of NPAs of Rs 540 crore having net outstanding book value of Rs 345 crore, and realised cash consideration of Rs 260 crore from Phoenix ARC Trust.

Bandhan Bank: The bank has received the copy of an order passed by NCLT Kolkata sanctioning the scheme of amalgamation of Gruh Finance into and with Bandhan Bank.

Birla Corporation: The company has informed the stock exchange that there was an incident of fire in the company’s unit at New Chanderia Cement Works, Chanderia (NCCW) on September 27, 2019 in the evening. As a measure of abundant caution, the company has suspended operation at one of its kilns at NCCW. This temporary disruption may not have any material impact on the operations of the company.

NBCC: The company has signed a Memorandum of Understanding (MoU) with the Ministry of Youth Affairs and Sports (MYAS), Department of Sports, Government of India to provide project management consultancy for the development of National Sports University at Imphal, Manipur. The approximate cost of the project would be Rs 400 crore.

MBL Infrastructures: MBL lnfrastructures announce shareholders’ nod for fund-raising and implementation of the resolution plan.

Lupin: Pharmaceutical major Lupin announced the completion of the Good Manufacturing Practices (GMP) inspection of its Goa facility, Unit I and II, by the Pharmaceutical and Medical Devices Agency (PMDA), Japan. The inspection was conducted from September 24-27, 2019.