Index trend and stocks in action December 23, 2019
Last week, the markets were in a cheerful mood since, out of five trading sessions, the market ended in green for four consecutive sessions. Also, the markets made new all-time highs on four occasions during the week. Though the momentum on the last trading sessions flattened, the markets did not show any sign of retracement and, instead, continued to consolidate at higher levels. The price action of Friday resulted in the formation of a Doji like candlestick pattern. On a weekly basis, the index ended the week with a gain of 1.53 per cent. Though the benchmark index ended positive, a divergence was witnessed in the broader market, with the Nifty Midcap losing 0.15 per cent and the Nifty Smallcap adding 0.72 per cent. FPIs were the net buyers in equities in all five trading sessions of the week. On the flipside, DIIs were the net sellers on all the sessions.
The Nifty is trading at a lifetime high and, technically, in uncharted territory with the help of index heavyweights, which also made lifetime highs. However, the formation of Doji like pattern at the highs on Friday after a reasonable up move is a sign of indecisiveness and tiring bulls. Moreover, the index has closed at the upper Bollinger band. As per the Doji candlestick rules of Steve Nison, the opening of the next candle after the Doji candle will decide the trend. In case, the index opens in the positive territory and closes above the opening mark, there are more chances of meeting the upside target of 12,300-12,350. On the other hand, if it closes below the Doji candle then it will be led to a correction. Hence, as long as the Nifty protects the prior bar low, it will remain with a bullish bias. On the downside, the 12,150 level is a crucial support level.
All in all, the indecisive formation at the top indicates that a leeway or a corrective bias is on cards but the index, trading well above all crucial moving averages at present, bodes well for the bulls and the formation of a long bull candle on the weekly timeframe surely makes a case of buy on declines.
Ratnamani Metals & Tubes: The company has received a new domestic order of Rs 81.00 crore for the supply of coated CS pipes for an oil & gas pipeline project to be completed between April and September 2020.
Cadila Healthcare: The USFDA inspected the company’s topical manufacturing facility, located in Ahmedabad from December 16 to 20, 2019. At the end of the inspection, no observation (483) was issued.
Tata Motors: Jaguar Land Rover has acquired Bowler, the UK-based manufacturer of all-terrain performance cars, parts, and rally raid vehicles.
Wipro: Wipro partners with NASSCOM to unveil FutureSkills platform.
PSP Projects: The company has emerged as the L-1 Bidder for EPC Design and Build Construction of the proposed GIDC Tech-Hub at GIFT City, Gandhinagar, Gujarat, with bid value of Rs 307.53 crore (including taxes).
Asian Granito: The company launched the exclusive 'AGL Bathware' range rationally at a Dealer meet in New Delhi.
NBCC: NBCC has received a letter of intent from HIL (India) to provide project management consultancy services for development of 5.12 acres land parcel on self-sustainable model.