Index trend and stocks in action on November 7, 2017

The first day of the week started on a negative note amid subdued cues from global bourses. However, markets initiated recovery after the first hour, driving the benchmark indices to new highs. Markets retreated yet again in the afternoon session to close flat. Finally, Nifty and Sensex closed at 10452 and 33731, respectively. Broader markets outperformed with Small-cap and Mid-cap indices gaining 0.3 per cent and 0.46 per cent, respectively. Auto stocks gained 1.3 per cent, followed by PSU Banking index gaining 0.9 per cent. Market breadth remained almost flat with 853 advances and 883 declines on NSE. 

Technically, Nifty broke its record high but could not sustain at the higher levels and retreated to close absolutely flat. Thereby, consolidation continued for the third consecutive day. In case Nifty retreats confirming the provisional reversal, we may see the index correcting some more, where we hold 10,436-10,430 as immediate supports, followed by 10,403. However, following its consecutive four-day trend of making new highs, if Nifty recovers above 10,460-10,490, it may see the level of 10,550 in the near term as the next resistance.  

Reliance Communications (RCom): The ADAG Group’s telecommunication business, RCom, has signed memorandum of understanding (MoU) with Veecon Media and Television for sale of Reliance Big TV. The company is its subsidiary and is into the business of providing DTH services across the country. 

Tata Chemicals: The company recently announced the sale of its phosphatic fertilisers business to IRC Agrochemicals for a consideration of Rs 375 crore. The sale includes transfer of Haldia plant, trading business of bulk and non-bulk fertilisers along with immovable, movable properties, working capital and product brands. 

Bank of Maharashtra (BOM): A major public sector bank, BOM has cut its marginal cost of funds based lending rate (MCLR) by 0.05 per cent. The said is effective for one year starting November 7. The base rate is maintained at 9.6 per cent. 

ONGC, GAIL: These oil and gas companies would be the first PSUs to bid for the Jubiliant Energy’s subsidiary JEKPL, which has interest in the Assam block and is undergoing insolvency resolution. 

Edelweiss Financial Services: This non-banking financial service company has recently been assigned rating for its short term debt Issue. Rating agency CRISIL has assigned CRISIL A1+ to this debt issue aggregating Rs 4500 crore.