Index trend and stocks in action September 18, 2019

‘Bulls take the stairs and bear take the elevator’. This well-known stock market adage fits perfectly to the present structure of the Nifty. Nifty almost rose 3 per cent from the recent swing low of 10,746 and it took almost 6 trading sessions to reach the high of 11,084. But, bulk of the gains were erased in just last two trading sessions and especially on Tuesday as the 50-share index Nifty lost about 186 points to close at 10,827 mark. The price action formed a sizable bearish candlestick pattern, supported by higher volumes in the last five trading sessions. This is a negative indication and signals more weakness ahead. The two days of sharp decline have taken the Nifty below the short term moving averages such as 8-EMA and 21-DMA. Going ahead, the key level to watch out is the 10,740 mark. Any breach of this level would open more doors for steeper slide and we could see a re-test of swing low of August (10,637) in the coming days. Meanwhile, on the upside, immediate resistance is seen at 10,980 levels and only on a close above the same may change the set-up differently. Overall, the current structure of the markets shows that the indices are under the bear grip as Nifty is trading below all short, medium and long term moving averages. Furthermore, bearish trend will continue as the death cross that had taken place earlier now shows that the gap between the 50-DMA and 200-DMA has widened. The 200EMA is moving on a downward trajectory.

Sunteck Realty: Sunteck Realty has acquired a prime project near Mumbai’s Lokhandwala, Off New Link Road, Andheri (West) with the potential for development of approx. 1.1 mn sq.ft in saleable area and a revenue of over Rs. 2,500 crore in the next 4-5 years.

Hindalco Industries: Hindalco debuts on Dow Jones Sustainability Index {DJSI) 2019 in the Emerging Markets category.

Gujarat Alkalies and Chemicals: Company has updated that remaining 12.5 MW Solar Power Plant at Charanka has been commissioned. With this, the commissioning of entire 20 MW AC Solar Power Plant installations in phased manner at Charanka, is completed.

GHCL: Company has placed the Commercial Paper (CP) amounting to Rs. 25 crores.

Ahluwalia Contracts: Company has secured new order of Rs. 407 crores for Construction of Medical College (Civil Works) at Village Koriyawas in Mohindergarh Distt. Rewari (Haryana) and other orders aggregating to Rs. 90.36 crores (approx).

Bajaj Finance: The board of the company has approved raising of capital up to Rs. 8,500 crore through a QIP.

Balmer Lawire: The Company has deferred its decision on bonus share issue.

Coffee Day: The Board has approved and the Company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Limited, a wholly owned subsidiary of Tanglin Development Limited ('TDL'). The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Private Limited. The transaction is at an Enterprise Value of Rs. 2,700 crore subject to certain closing adjustments. The closing of the transaction is subject to completion of conditions precedent including receipt of regulatory approvals.