Index trend and stocks in action October 10, 2019
Dussehra, a popular festival of the country, commemorates the victory of good over evil. Markets were closed on this auspicious day. The grip of evil bears for the past six trading sessions and the early hour market price action indicated that they will continue to whitewash the bulls for the seventh straight day. However, the bulls celebrated the festival of triumph of good over evil as they did not just put an end to the downward movement but also managed to reclaim the important psychological 11,300 mark. Furthermore, it retook its 21 and 200 DMA to close near the day's high. The price action formed a sizable bull candle and the emergence of this sizable bull candle occurred near the multiple support points i.e. 50-DMA and the 61.8 per cent retracement of the recent up move and this has lent some credibility to the support area for the near term. In the coming session, the 11,400 would act as an immediate resistance level and a breakout above the same, along with decent advancement in the market breadth, would signal increasing strength in markets and open gates for further up move towards the level of 11,550 in the short-term.
The leading sectoral index, Nifty Bank, which corrected nearly 78 per cent of the two day's euphoric rally and underperforming the 50-share index Nifty lately had managed to outperform the Nifty on Wednesday. However, it has closed right at the 200-DMA and around 38 per cent retracement of the recent fall. It would be interesting to see whether the banking index sees a follow-up buying and takes away its 200-DMA or not. If it does the celebrations would continue on the D-street.
Overall, Wednesday's bullish movement opens door to more strength, but, the second quarter earning seasons that kickstarts today could decide the fate of key indices in the near term.
Indiabulls Housing Finance: RBI has informed that the application for voluntary amalgamation of the company with Lakshmi Vilas Bank can’t be allowed.
Infosys: Infosys has entered into a strategic partnership with Eishtec, which includes the transfer of Eishtec’s business to Infosys BPM, an Infosys company. This will enable Infosys to better serve their clients in the region, leveraging deep expertise in technology, analytics, and digital.
Reliance Industries: Reliance Jio Infocomm, subsidiary of the company has said it will start charging for outgoing calls at the rate of 6 paise per minute for mobile voice calls to other operators.
Torrent Pharmaceutical: The Company has received a warning letter dated 08-Oct-19 from the USFDA for its Indrad facility in Gujarat. This action follows the earlier intimation received from USFDA in August 2019, wherein the agency had classified its inspection as 'Official Action Indicated' (OAI).
Bharti Airtel: Bharti Airtel Announces Successful Pricing of US$ 750 million 5.650 per cent Subordinated Perpetual Securities, aimed to achieve company’s objective of deleveraging and strengthening of the balance sheet.