Index trend and stocks in action September 23, 2019

The last trading session action of the market is a good illustration of something that Dough Kass says so often, which is that the market has no memory from day-to-day. For the majority of the last week markets looked gloomy and the way it was grinding towards the recent lows, market participants were almost losing all hopes from the market. The biggest thorn in the flesh which saw the markets crack impulsively were the continuously sell-off by the FPIs and the concerns of slowdown in the economy. However, just like there is sunrise after the darkness, the markets witnessed a V-shaped recovery that was also supported with participation from most of the sectors. The FM announced set of measures to overturn the economic downturn shackling the country’s economy at present.  The Nifty surged over 5 per cent and recorded biggest rally on a single day in 10-years. The price action of the day formed a wide range bar - a powerful signal of trend reversal. With this strong upmove, Nifty closed above the important moving averages, 21-DMA, 50-DMA and 200-DMA. There were several resistance in the range of 11,145-11,200. All these resistances were cleared by bulls in a flash.  Going ahead, the zone of 11,145-11,200 now will act as an important support zone and as long as Nifty holds above this zone, dips should be utilized to initiate long positions and the targets are open towards 11,418-11,468 levels. The zone of the 11,418-11,468 is the next big hurdle for the bulls as its confluence of 50-DMA and the 61.8 per cent retracement of the downward rally from 5th July to 23rd August. The RSI on the daily chart has moved above its recent swing high and has marked a fresh 14-period high, which is bullish. Also, the daily MACD has shown a positive crossover. In a nutshell, the bulls are in sweet spot as long as they manage to hold above the 11,145-11,200 and target for the short term are set at 11,418-11,468 levels.


Petronet LNG: Company has signed a Non-binding Memorandum of Understanding (MoU) with Tellurian Inc. at Houston, USA wherein the company and its affiliates will like to explore possibility of purchase of up to 5 million tonnes per annum of liquefied natural gas (LNG) from Driftwood project concurrent with equity investment.

CIPLA: Company has received the Establishment Inspection Report (EIR) by USFDA for its API manufacturing facility in Virgonagar, Bengaluru, indicating closure of the inspection.

Vikas Ecotech: Company has received an amount of Rs 8.37 crore towards its insurance claim filed with Oriental Insurance Co. for the losses incurred on account of fire in its Rajasthan factory.

Maruti Suzuki: Maruti Suzuki’s latest offering- Mini SUV S-Presso is set to launch this festive season.

Cox & Kings: Company defaulted on the payment of commercial papers worth Rs 30 crore, which was due on September 20.

Ipca Laboratories: The meeting of the Board of Directors of the company is scheduled on September 26 to consider issuance of convertible warrants to promoters/ members of the promoter group of the company on preferential basis.