Index trend and stocks in action December 24, 2019
The Nifty made a soft start to the day and slipped into negative terrain on the back of profit taking. In the afternoon, the declining pace started to pick up and the index made new low of 12,213. However, in the last leg of the trade, it saw a sharp recovery from lower levels and finally closed with a downtick of meager 9 points.
The price action of the day formed a Small Body candle with shadow on either side. The Nifty witnessed profit taking and took support around its 5-DEMA in Monday’s session. The level of 12,300 and 12,350 is likely to act as a resistance. As we trade near to the all-time high levels, there are a couple of points we should keep in mind. At higher levels, the loss of momentum is very much visible and the weakening market breadth raises some concerns as well. Another interesting observation is that future volumes are consistently lower than the 20-day average volume in the rally from December 9. However, although above factors raise some concerns, we will reiterate buy on dips approach as long as the Nifty stays above 12,100 mark bullish.
Overall, there are chances for the index to remain in consolidation mode. We would advise our readers to avoiding aggressive purchase at current levels and wait for dips to accumulate.
Hindalco Industries: Muri refinery in Jharkhand has re-started production of Alumina. Jharkhand State initiated the start-up process after receiving the consent to operate from the Jharkhand State Pollution Control Board (JSPCB) to import Alumina.
Lemon Tree Hotels: Lemon Tree Hotels signed a license agreement for a 55 room upcoming Hotel at Hill Cart Road in Darjeeling.
HCL Technologies: HCL Technologies and Critical Manufacturing Partner to bring Industry 4.0 services and support to MES clients.
IRCTC: The Ministry of Railways revised the tariff of standard meals on static units over Indian Railways.
Avantel: The company received an order for the amount of Rs 34.18 crore from Satish Dhawan Space Centre SHAR, ISRO, for the supply of subsystems of wind profiler radar. It also receive another order of Rs 8.80 crore from the Ministry of Defence, Govt of India, for supply of satellite communication equipment.
Chalet Hotels: The company has today entered into a franchise agreement and other related agreements with Hyatt India Consultancy Private Limited and its affiliates for the brand 'Hyatt Regency' in respect of its upcoming hotel at Airoli in Mumbai.