Index trend and stocks in action October 29, 2019

Nifty started the Samvat 2076 on a strong note. In a one-hour special trading session, though the benchmark index declined rather quickly from the opening highs, it, eventually, settled with a modest gain. The index closed the session at 11,627, up by 0.37 per cent.
 
Over the past six trading sessions, Nifty has moved in a range and has been successfully respecting our mentioned support level of 11,470-11,500 on a closing basis. It seems to be laying the foundation for an upside breakout. As there is more good than bad on the charts at the current juncture, with the index still trending above the daily 8EMA and holding above its 38 per cent retracement of the up move. This makes us believe that the area of 11,700-11,720, which is a crucial resistance, should be on test soon and, once that is taken out the index, the same could be on course for 11,800-11,940. On the flipside, we change the stance on a close below the 11,450 support. 

At present, we are in a neutral mode, deciding the next, as the price action remains in the digestion mode in an overall range. The market is a little more bullish than bearish as no major support has been breached on a closing basis. The only thing that truly matters in the coming days is whether Nifty gets a close above 11,720 mark. In this case, we could effectively treat bears as extinct. However, on the other hand, if the level of 11,450 is breached decisively, then we will see the bears finally resurrecting themselves.

Mahindra & Mahindra: this festive season, the auto division of the company delivered close to 13,500 vehicles across the country on the auspicious day of Dhanteras. This figure was substantially higher than the deliveries made last year on Dhanteras.

GVK Power & Infrastructure: The subsidiaries of the company have entered into definitive agreements to raise an investment of Rs. 7,614 crore from Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments), and with National Investment & Infrastructure Fund (NIIF). The proceeds from the investment will be used to primarily retire debt obligations of its holding companies and fund the purchase of additional shares in MIAL (Mumbai International Airport Limited) from partners, namely, Bidvest and ACSA.

Vodafone Idea: The company has informed that the Hon'ble Supreme Court, through a separate order, has given three months' time to deposit the due amount and report compliance.

Dr Reddy’s Laboratories: The audit of company’s API Srikakulam Plant (SEZ), Andhra Pradesh, by the USFDA has been completed on October 25, 2019 and issued a Form 483 with four (4) observations.

Reliance Industries: Reliance Industries (RIL) is planning to setup a wholly owned subsidiary (WOS) for digital platform initiatives. It will infuse an incremental Rs. 1,08,000 crores equity (OCPS) in the WOS.