Index trend and stocks in action October 25, 2017

During the previous session, Nifty started the session slight higher and extended its up-move to levels of 10,237.75, however, it failed to sustain at higher level and after a minor dip from higher levels it oscillated in a narrow range for the rest of the day. Yet, Nifty managed to close above 10,200 mark. The day’s action formed a Spinning top like candlestick pattern, which indicates indecision among market participants. From the last six trading sessions, Nifty is consolidating in a 110-130 points range, in the coming session, follow through strength and close above the level of 10,240 will signal continuance of upward momentum after a brief consolidation phase. On the other hand, failure to hold support level of 10,170 will result into further correction up to levels of 10,120. 

PSU Banks: The PSU banking stocks may get a big boost in today’s trading session as the government has decided to infuse up to Rs. 2,11,000 crore into bank capital over the next 2 years. Nearly Rs. 1,35,000 crore will be given out in the form of recapitalization bond while the balance Rs. 76,000 crore will come in form of budgetary support from the government. 

Kaya: The Investment, Borrowing and Administrative Committee of the Board of Directors of Kaya Limited at its meeting held today, October 24, 2017 has given its consent to provide Bank guarantee of an amount not exceeding US$ 4 million on behalf of Kaya Middle East DMCC ('Kaya DMCC'), a wholly-owned subsidiary of the company, to facilitate Kaya DMCC to obtain bank loan for the purpose of future growth and for meeting its working capital requirement. 

Lupin: Lupin receives FDA approval for generic Lodosyn tablets. 

NLC: Government will sell up to 5% of NLC at Rs. 94 per share.