Index trend and stocks in action October 14, 2019
All's well that ends well, this sum ups the entire story of the last week trading action on the D-Street. After initial set-back on the very first trading session of the day, the bulls took support around 50-DMA and retook its 200-DMA during the week after a brief breach during the week. During the week, even though Nifty fell more than 0.2 per cent on Monday and Thursday, it escaped distribution day due to lower volumes as compared with previous session. On Friday, the 50-share index Nifty gained 70 points to end slightly above the 11,300 mark. On W-o-W basis, Nifty clocked gains of 1.17 per cent. But the broader markets i.e. Nifty Midcap and Small continued to underperform the frontline index and ended the week down by 0.10 and 0.34 per cent, respectively. This clearly indicates that the breadth is yet to improve. On the sectoral front, Financial Services retook its 50-DMA to join the FMCG and Auto index that are trading above their 50-DMA.
On weekly time frame, no significant formation was seen on the candles. A bull candle has been formed with shadow on either side which clearly indicates that on the higher levels profit booking was seen and on the lower levels accumulation was visible. All-in-all, in the coming week we will advise traders to keep watch on two key levels first one is the 11,400 on the upside and on the downside, the level of 11,090. As long as, these levels are not breached decisively, it is better to be on sidelines especially momentum traders. Meanwhile, they can look at opportunities on stock specific front as earning season is about to pick up steam. Once the level of 11,400 is cleared decisively the next level of resistance is placed at 11,500-11,550. In any case, if Nifty slips with higher volumes below 11,090 levels i.e. where the 50-DMA level is currently placed, the target will be around 10,900-10,800 levels. So, for the coming it is advised to keep an eye on the earnings as stock-specific activity will increase with a higher degree of volatility.
NMDC: Board of Directors approved raising of funds in one or more tranches secured or unsecured non-convertible debentures/bonds on private placement basis up to an amount of Rs 5000 crore.
IRCTC: IRCTC will make its debut on the stock exchanges on October 14 after its IPO received overwhelming response from investors.
Jain Irrigation: India Ratings and Research (Ind-Ra) has downgraded Jain Irrigation systems Limited's (JISL) Long-Term Issuer Rating to ‘IND D’ from ‘IND BB’; while resolving the Rating Watch Negative (RWN).
HCL Technologies: HCL Technologies acquires Sankalp Semiconductors Private Limited.
Cadila Healthcare: Cadila Healthcare’s API manufacturing facility at Dabhasa successfully completes USFDA inspection.
Reliance Capital: Company has not received a single rupee of fresh borrowings in the last 18 months or so. Despite this extraordinary and unprecedented environment, the company has remained current on all its debt service obligations till date, and made principal and interest payments aggregating over Rs 8000 crore during this period.
GOCL Corporation: IDL Explosives Limited (IDLEL), a wholly owned subsidiary of the Company, has received order worth Rs. 375 crores from Coal India Limited for supply of Bulk Explosives, to be supplied over a period of 2 years i.e. by October 2021.