Index trend and stocks in action September 20, 2019
After taking a breather on Wednesday, bears made a strong comeback on Thursday as the 50-share index Nifty lost 136 points over the day to close at 10,705 mark. It comes as no surprise that the bears were back in the town as we had clearly mentioned in our previous note why we were expecting the comeback of bear sooner than later. Technically, Nifty is in a very weak structure, as it has broken out of the bearish symmetrical triangle or a 29-day box range. The 50-share index closed at lowest level since 20th February. As this fall is supported by heavier volumes and distribution is at the highest level, it is expected to be similar to the July fall. There is highest probability of the index breaching the 23rd August low of 10637. Nifty has consolidated between 50 per cent and 61.8 per cent retracement of 26th October 2018 to 3rd June 2019 high. With Thursday’s fall, the 50-share index has decisively closed below the 62 per cent retracement. The next level of strong support is placed at 10580-10455 zones. This support may hold for the September month. Evidences show that the market is completely under the bear grip. Unless it closes above the 11145-11200 levels, any rally can be considered as a pullback only. As the major indicator RSI has not yet reached to an oversold condition, it is expected to see some more declines in coming days. This correction may lead to more pain across the stocks, irrespective of market capitalisation. So, be ready to brace for a tough situation ahead.
Lux Industries: Lux Industries has issued commercial papers of Rs. 50 crores with issue date 19th September, 2019 and due for maturity on 18th December, 2019. This is in line with the management efforts to bring down the finance cost.
Yes Bank: Morgan Credits Pvt Ltd (“MCPL”), part of the Promoter Group of YES Bank, has sold 2.3 per cent shareholding in the Bank. The proceeds will be solely utilized to PREPAY substantial portion of outstanding Non-Convertible Debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (“RNAM”).
Bharat Forge: The company has acquired a 50 per cent stake in German company Refu Electronik GmbH for 11.35 million euro.
Adani Transmission: The company has signed Share Purchase Agreement with PFC Consulting Ltd. on 19th September, 2019 for acquisition of its entire stake in Bikaner-Khetri Transmission Limited (BKTL).
Kolte-Patil Developers: The company has delivered strong returns to Motilal Oswal Real Estate (MORE) from its City Avenue project in Wakad, Pune.
DHFL: The company is in receipt of proposal(s) from reputed developers to act as development managers in respect of certain large projects including projects under Slum Rehabilitation Scheme wherein the company has extended loans in the past.