Index trend and stocks in action September 25, 2019

After posting about 900 points net gain in two days, the benchmark Nifty 50 index took a breather on Tuesday as Nifty oscillated in a 115-points range back and forth before ending the day with minuscule losses of 12 points. The price action formed an doji inside bar as prices moved within the high to low range of prior bar and the close was near to the open. Going ahead, we need to have follow-through days from now to continue the uptrend. The accumulation days are important to strengthen the market. Distribution days will certainly weaken the market. If the market witnesses a negative close of more than 0.25 per cent with above average volumes, it will indicate distribution. 

We are roughly about 500 points away from all-time high level. Now the key resistance is placed at 11,710, which is a swing high and 11,790 which is 78.6 retracement level. Once these levels are taken out, the Nifty can retest the lifetime highs in the medium term. As the market structure has completely changed in just two days and the fundamental benefit of the tax cut already priced in, it is time to be cautious too. More than 62 per cent recovery of 73 days of a fall in two days is likely to attract profit booking. Also, as the monthly expiry is on cards on Thursday, it may possible to retrace to the extent of 11,470-11,380. Overall, we are likely to see some more cool-off in the index and the opening gap of September 23 to act as strong support

Bodal Chemicals: Bodal Bangla Ltd. has been incorporated in Dhaka, Bangladesh as a subsidiary company of Bodal Chemicals Ltd.

RPP Infra Projects: The company, along with its JV partner, has won an order for the construction of a two—lane road from Kaletwa to the India — Myanmar border in the Chin state of Myanmar. This new project worth Rs 4,140 million marks the diversification of RPP Infra Projects into the new geographical international location of Myanmar.

Morepen Laboratories: The company has clarified on a order passed by Securities and Exchange Board of India (SEBI) in the matter of issuance of global depository receipts (GDR) by the company. “It is hereby clarified that the said matter was pertaining to the year 2003 which has finally been settled by the SEBI today. Further, there is no impact on the existing securities listed with the stock exchanges as well as no financial implications on the business operation of the company, of the said order,” it announced.

GOCL Corporation: The LOC/SBLC facility of USD 300 million availed in the year 2012 by the company’s UK-based wholly-owned subsidiary, in connection with the acquisition of Houghton International Inc., has been fully repaid. The company has received a ‘no dues’ certificate from the bank which provided the facility.