Indian equity markets were trading around their intraday high points in the afternoon trading session, with Sensex and Nifty gaining around 627 and 173 points, respectively.

Welcome back to D-Street. I hope you enjoyed the long Diwali weekend splendidly. In early action, SGX Nifty indicates markets to open on a flat to positive note on the back of the rally seen on Wall Street overnight after the White House hinted that the phase one of the trade deal with China Could be signed the next month. 

As there is more good than bad on the charts at the current juncture, with the index still trending above the daily 8EMA and holding above its 38 per cent retracement of the up move. This makes us believe that the area of 11,700-11,720, which is a crucial resistance, should be on test soon. Stocks in news: Mahindra & Mahindra, GVK Power & Infrastructure, Vodafone Idea, Dr Reddy’s Laboratories and Reliance Industries.

Dilip Buildcon Limited has been declared L-1 bidder by the U.P Expressways Industrial Development Authority in the state of Uttar Pradesh.

Piramal Enterprises announced that its Board has approved fresh capital raise of Rs. 5,400 crores through a Rights Issue and preferential allotment of Compulsory Convertible Debentures (CCDs).

The stated approval for Mysore-Bellary Highway is the eighth such approval among 9 the contracts between Indinfravit and Sadbhav infra projects. 

The Aeroflex Industries in engaged in manufacturing of Stainless steel flexible hoses. It is the first company in South East Asia to manufacture 14 inch stainless steel hoses. 

Dixon Technologies and Samsung India Electronics, entered into an agreement for manufacturing Mobile Phones. Dixon will be manufacturing feature phones for Samsung from its new manufacturing facility located at Noida, Uttar Pradesh.

If the index moves above the recent swing high of 16,874 or breaks above the sloping resistance line of falling wedge pattern, then it will give a confidence to the bulls. Until then, we can consider the current upswing to only be an attempt to overcome the oversold condition.

So far the worst hit stocks in the market from 2018 have been small caps and mid caps. Some recovery was seen during the period March to May 2019 but yet again a massive correction was seen till September 2019.