Index trend and stocks in action September 24, 2019

The Nifty continued its euphoric rally for the second straight day on Monday as traders cheered the historic cut in corporate tax rate. The Nifty rallied about 3 per cent to close at 11,600 mark. The price action of the day formed a sizable bull candle carrying shadow on either side along with an unfilled opening upside gap. The Nifty has rallied about 900 points from the lower levels in the last two trading sessions and on Monday it has almost retraced about 78 per cent of the sharp fall which was triggered post the Union Budget announcement of additional surcharge. With back to back strong move by the bulls the Nifty has managed to comfortably trade above its important moving averages i.e. 50, 100 and 200-DMA. Now, Nifty is  trading about 3 per cent above its 200-DMA. In the coming session, Monday’s session high of 11,694 would be a crucial level to watch out on the upside as sustaining above this level would open up for further up-move towards level of 11,800 followed by 11,880. However, with the size and the speed of up-move we have witnessed in the index and also, the Nifty now closed out of the Bollinger Bands. As a rule, the price must come into the bands before move further high within two to three days. Hence, we believe a phase of consolidation might be seen in the index and during this consolidation phase the opening upside gap which was formed on 23rd September would now act as a crucial support for the index and any pullback towards these support level should be utilized to initiate a long position. At the same time, we believe investors and traders should look for stock specific opportunities which are likely to outperform hereon.

Thomas Cook: Thomas Cook India reiterates that there is no impact due to Thomas Cook PLC collapse in the UK. Thomas Cook India is an entirely separate entity from Thomas Cook PLC in the UK since acquisition of a 77% stake in 2012 by Canada based Fairfax Financial Holdings.

Manappuram Finance: Financial Resources and Management Committee of the Board of Directors of the Company held on Monday, 23rd September 2019 approved the issuance of the Private Placement of Rated, Secured, Redeemable Non-Convertible Debentures having face value of Rs.10 Lakhs each for the amount of Rs.215 Crores with an option to retain over subscription up to Rs.250 crores aggregating to Rs.465 Crores.

TCS: Company has announced the launch of its Real-time Payments solution in multiple markets, as part of TCS BaNCS for Payments, to help customers in their digital transformation journey.

Wipro: The company collaborated with FEBRABAN to develop noomis, an online platform for the financial services industry in Brazil.

Infosys: Infosys Finacle, part of EdgeVerve Systems, a wholly owned subsidiary of Infosys announced the successful completion of a global blockchain trial in partnership with R3, one of the fastest growing enterprise blockchain software companies in the world. The trial was completed in under 5 weeks.