Index trend and stocks in action September 27, 2019

After three back-to-back declines in the Nifty for June, July and August, the September series was a memorable one for the bulls camp as the Nifty surged roughly by about 5 per cent. At the beginning and for the majority of September series the mood continued to be depressed on D-Street. However, the turning point in the September series was when the finance minister waved a magic wand and surprised the markets by cutting tax rates. With this positive development, bears were badly mauled, and you could say the bulls recovered their pending dues in two-straight sessions of spectacular rally. The price action on Thursday formed a sizable bull candle carrying higher high-low formation and it closed above the prior bar open=high. Going ahead, traders need to watch the market behaviour to get a clear picture on the future price action.

 As of now, there is no weakness visible in any timeframe. If in any case Nifty closes above the 11,600 level, then 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 bulls are in a sweet spot and dips should be utilised to initiate long positions. For the next 2-3 days, levels of 11,600-11,300 will be of critical resistance and support levels respectively. As some of the oscillators reached an overbought condition, there are chances of some cool-off or profit booking. However, try to remain cautious on either side as volatility is higher. Follow strict money and risk management rules to sail safely through the current volatile levels.

Thomas Cook (India): CRISIL’s credit bulletin dated September 26, 2019 communicated to Thomas Cook (India) Ltd. and uploaded on its portal reflects that the ratings of Thomas Cook (India) Ltd. remain unaffected as the bankruptcy of Thomas Cook PLC in United Kingdom has no linkage with Thomas Cook (India) Ltd.

YES Bank: Yes Capital (India) Private Ltd, part of the promoter group of YES Bank has sold 1.8% shareholding in the bank. The proceeds will be utilised to prepay the entire 100% balance outstanding of non-convertible debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management (India) Private Ltd.

Majesco: The company announced that it has once again been named a ‘leader’ in the September 2019 Magic Quadrant for P and C Core Insurance Platforms, North America.

Quess Corp: The company allotted 7,54,437 equity shares by way of private placement on a preferential issue basis to Amazon.com NV Investment Holdings LLC at Rs 676 per share and received Rs 51 crore.

Westlife Development: McDonald’s India (West and South) has kicked off the festive season in style by launching a campaign called ‘Asli Bachat’. The brand is offering more than 30 combos of sumptuous burgers and sides along with select beverages at an irresistible price of Rs 59.

KPIT Technologies: GETS Global Berhad and KPIT Technologies (P) Limited have agreed to establish a ‘special purpose vehicle’ (SPV) – an e-mobility centre to pursue selective opportunities in the Malaysian and other ASEAN countries.

Adani Enterprises: The company incorporated Adani Ahmedabad International Airport Limited for operating, maintaining, developing, designing, constructing, upgrading, modernising and managing the existing Sardar Vallabhbhai Patel International Airport located at Ahmedabad, Gujarat and is yet to commence its business operations.