Markets witnessed divergent trend on Thursday, with Nifty ending with modest gains and trading at an all-time high while midcap and small cap indices end lower. The Bank Nifty still remains distant from all time high as recent gains in Nifty is mainly contributed by defensives like IT, Pharma and FMCG. There has been strong case of a third-degree negative divergence in RSI of Nifty 50 Index which may turn it vulnerable to sharp slide at current levels. The Nifty Small cap index after the recent gains has completed rising wedge and is prone to decline of 15% in the coming days. Overall, outlook remain ultra cautious and the current up move is more to do with short covering.
Nifty Small Cap index
Stocks to watch
Positive Read through
- NTPC – Commissions 1st part capacity of 160 MW out of 320 MW Bhainsara solar project in Jaisalmer.
- Sugar Cos – Government removes cap on sugar diversion for ethanol production for ESY24-25.
- PB Fin – Tencent cloud EUR sells 2.1 pct stake via block deals, Axis MF, HDFC Life buyers.
- Lemon Tree – Signs licence pact for 72-room hotel in Ayodhya, Uttar Pradesh.
- Triveni Engg – Government permits sale of up to 2.3 MT of rice from Food Corporation Of India.
- Indigo – Rakesh Gangwal’s Trust sells more than 5 pct stake via block deals, MS Asia among buyers.
- NLC – To set up JVs with RVUNL for lignite-based power unit & 2,000 MW renewables unit.
- Prestige Est – Launches QIP to raise up to Rs. 50 bn, indicative issue price Rs. 1,674/share.
- RVNL – Signs MoU with Patel Engineering for hydro & other infra projects in India & overseas.
- GE shipping – Signs contract to sell its 2011 built supramax dry bulk carrier Jag Rani.
- ITI – To supply 500 sets of EVMs to West Bengal State Election Commission.
- Infibeam – Gets NCLT nod for arrangement between company, Odigma & Infibeam Project.
- 3M India – NCLT approves merger of arm 3M electro & communication with company.
Negative Read through
- Max Estates – To raise up to Rs. 8 bn via QIP, issue price of Rs. 597.5/share.
- SCI – Gets GST demand worth of Rs. 1.60 bn for FY20.
- Spice Jet – DGCI places airline under enhanced surveillance with immediate effect.
- LIC – Gets GST demand, interest and penalty order of Rs. 6.06 bn for FY20.
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