Index trend and stocks in action October 31, 2018

The NSE benchmark Nifty opened the session on a tentative note and thereafter went on to mark the day’s high. However, the index faced resistance around the 38.2 per cent retracement of the recent downmove (10,710-10,005) and entered into negative terrain and, in the last hour of the session, the index weakened further and ended the day below the 10,200 mark. The price action formed a small body negative candle. Going ahead, we expect Nifty to face strong resistance near the last two sessions' identical high of 10,275-10,285. A follow-through move above this high would open up for further upmove up to the levels of 10,380-10,440. On the other hand, the bulls need to hold above the level of 10,175 to avoid fresh weakness from creeping in as failure to hold on to the 10,175 support would induce a fresh round of selling and this may take the index towards the level of 10,100, followed by 10,020. The daily RSI is currently hovering around 39-40 mark, and for the bulls, it is important for the RSI to cross above the level of 40. 

PNB: The bank will hike MCLR by 5 bps across tenures effective November 1. 
  
Dr Reddy’s Laboratories: The audit of company’s formulations manufacturing facility at Duvvada, Visakhapatnam, by the US FDA has been completed today. The company has been issued Form 483 with 8 (eight) observations. 
  
Kridhan Infra: Singapore-based 100 per cent subsidiary KH Foges has been awarded two new orders in Singapore worth US$24.63 million (Rs 130.5 crore). 
  
Blue Star: The company's board has approved  the proposal of setting up of new manufacturing facility for water coolers and deep freezers at Wada, Maharashtra, at a capex of Rs. 115 crore (approx). 
  
IL&FS Transportation: The interest due and payable on October 29 and October 30, 2018 on the NCDs issued by the company were not paid to the debenture holders due to insufficient funds. 
  
Coal India: The government will sell up to 18,62,22,275 (3 per cent) equity shares of Coal India through offer for sale on October 31 and November 1, with an option to additionally sell 37,24,44,550 (6 per cent) equity shares of the company. 
  
GMR Infrastructure: GMR Infrastructure arm has acquired 100 per cent stake in Menzies Aviation Cargo for Rs. 59.8 crore.