Index trend and stocks in action October 15, 2019
The 50-share index Nifty opened the session on a positive note and the bulls appeared to be in the driving seat for the majority part of the session that touched the day's high at 11,420. In the process, it regained the 100-DMA for a wee bit during intra-day. However, in the final hour of the session, the bears pricked the bubble and the index lost around 80 points from the day's high and closed near the day's open. This led to the formation of a doji like candlestick pattern on the daily time frame.
Technically, the benchmark index faced stiff resistance near its 100-DMA and as observed by us in the recent sessions every attempt of moving higher has attracted selling pressure. The recent high volatility of markets in a broad range is the result of huge historical upsurge of 1000 points in just two days. The index is still adjusting to that euphoric move. The Nifty has already retraced about 60 per cent of the rise and digging deeper suggests that it will try to consolidate for some time before taking a decisive move as the leading indicator RSI on both time frames i.e. weekly as well as daily hovers in the neutral region without any bias and the ADX is not improving as +DI is just above the –DI by a narrow margin. This clearly indicates that markets lack clear trend. Other indicators are also mirroring the same image.
In recent times, most of the intra-day traders are undergoing a difficult patch in trading as markets have failed to deliver any decisive trending moves and the volatility is huge tlreaching minor stoplosses in no time. However, we will reiterate the best strategy for the intra-day traders is to sell into strength, and buy into weakness until and unless we see a decisive move above the 100-DMA (11,408) along with huge volumes and improved market breadth. Also, a strong breakout above the 11,408 mark can push index higher towards 11,500-11,550 levels. Conversely, a decisive plunge below the level of 11,060-11,090 can lead to test the important psychological base of 11,000 mark.
Lemon Tree: Lemon Tree has entered into Kolkata with the launch of 142 room hotel- Lemon Tree Premier, New Town.
Adani Transmission: the Company has signed Share Purchase Agreement with REC Transmission Projects Company Limited on 14th October, 2019 for acquisition of its entire stake in WRSS XXI (A) Transco Limited (WRSSTL).
JSW Energy: the resolution plan submitted by the Company for Ind-Barath Energy (Utkal) Limited (“Ind-Barath”) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016, has been approved by the Committee of Creditors on 14th October, 2019
TCS: TCS Named India’s Overall Most Outstanding Company in Asiamoney's 2019 Poll.
Yes Bank: Bank on 14th October has offloaded about 6.56 per cent stake in Fortis Healthcare.
Lakshmi Vilas Bank: RBI imposes Rs 1 crore penalty on Lakshmi Vilas Bank for non-adherence of guidelines on IRAC norms and divergence in respect of two NPA accounts aggregating to Rs 169.50 crore for the year ended 31st March, 2017.