Index trend and stocks in action September 30, 2019

In September, Friday sessions on D-Street have been synonymous with press conferences of the finance minister, closing in the green. However, last Friday the bulls broke with the tradition of the green close as for the first time in September the Friday session witnessed a negative close. The Nifty lost 59 points over the day to close at 11,512. The price action formed a NR7 with inside bar. An NR7 is a trading day with the narrowest daily range of the last seven days and an inside bar has a higher low than the previous day’s low and a lower higher than the previous day. This formation is an interesting set-up which indicates range contraction or a period of rest and Toby Crabel states that after a period of rest or range contraction, a trend day will often follow.

Hence, in the coming session traders are advised to closely monitor the high and low (11,594-11,500) of Friday’s session as a break above or below Friday’s high or low could set the tone for the index, which otherwise has been trading in a broad range for the last four sessions. If in any case Nifty closes above the 11,600 level, we may get fresh long opportunities in the market and Nifty might move towards the level of 11,710, which is a swing high and 11,790 which is 78.6 per cent retracement level. On the downside, the bulls will closely monitor the September 23 bullish gap and as long as this is protected the bulls will be in a sweet spot and the dips should be utilised to initiate long positions.

Jindal Steel and Power: Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) has set a target to reduce its net debt by more than Rs 10,000 crore to below Rs 30,000 crore and take EBITDA (earnings before interest, tax, depreciation and amortization) to more than Rs 12,000 crore per year on a consolidated basis over the next two years.

NTPC: The company has informed that Unit 1 of 800 MW of Lara Super Thermal Power Station (2 x 800 MW) will now be declared commercial operational with effect from 00:00 hours of October 1, 2019.

Reliance Capital: The company has announced that it has concluded transaction with Nippon Life Insurance Company of Japan to sell its stake in Reliance Nippon Life Asset Management Ltd. Reliance Capital has received proceeds of approximately Rs 5,500 crore (USD 785 million) through sale of its shareholding to Nippon Life Insurance Company and through offers for sale.

Lakshmi Vilas Bank: The company has informed that a prompt corrective action plan has been initiated by the RBI with effect from September 27, 2019.

Kajaria Ceramics: The company’s wholly owned subsidiary, Kajaria Tiles Private Limited, started commercial production of tiles on September 29 at its manufacturing facility situated at Chittoor district in Andhra Pradesh.

Cipla: the United States Food and Drug Administration (USFDA) conducted a cGMP inspection at the company’s Goa manufacturing facility from September 16-27, 2019. The inspection ended with 12 observations, none of which are related to data integrity. The company will respond to the agency within the stipulated timeline.

Canara Bank: The bank has received Rs 1,806 crore capital infusion by the Government of India.

Punjab National Bank: The bank has received Rs 13,091 crore capital infusion by the Government of India.

Cox and Kings: IATA has terminated its license to the company for selling tickets and has asked the company to surrender its IATA ID card. However, the company has requested the IATA authorities to re-instate the company’s IATA license against clearance of dues.

Indian Overseas Bank: The bank has received capital infusion of Rs 3,857 crore from the Government of India.

Tata Power: Tata Power Solar Systems Limited, India’s largest integrated solar company and Tata Power’s wholly owned subsidiary, post reverse auction of 105 MW peak floating solar project, has received a letter of award to develop this project worth approximately Rs 343 crore, including three years of operation and maintenance.