Index trend and stocks in action March 22, 2019
Nifty ended Wednesday's session with a modestly negative bias after seven trading sessions and traded within a range of just 53 points for the entire day. The price action formed a small body bear candle. Nifty50 is still making higher highs, indicating positive momentum, but it is making hesitant or exhaustive patterns at the top, which is creating some suspicious indications. As long as Nifty maintains the supports and forming higher highs and higher lows, do not worry about long positions. If it closes below the previous bar, only then think of exiting longs and consider shorting opportunities. On the upside, Nifty may encounter resistance at the 11,550-11,600 zone. Nifty’s latest swing is 20 bars old and has advanced by about 9.17 per cent from the February 19 lows. Earlier, the bigger swing from June 28 to August 28, 2018 had sustained for 41 bars with small retracements. Prior to that, there was another swing of 35 bars with 8.15 per cent gain. In terms of percentage gain, the current swing is sharper than the previous ones. Generally, any asset price cannot move in a straight line for a longer period. It has to follow the trend rule, which is, every rise will be followed by a corrective move. As the momentum in Nifty is waning since last four days, we can only wait for a bearish confirmation. At this juncture, it is better to avoid fresh longs in the index, but one can continue the existing longs as long as Nifty maintains the higher lows.
Jubilant Life Sciences: Jubilant Lifesciences, an integrated global pharmaceuticals and life sciences company, has been informed by the US Food and Drug Administration (USFDA) that the inspection from December 10-18, 2018 at the Jubilant Generics Limited (API manufacturing facility in Nanjangud, Mysore, has been classified as “Official Action Indicated”. The USFDA also stated that the facility might be subject to a CGMP regulatory or enforcement action based on this inspection and that the FDA could withhold approval of any pending applications or supplements in which this facility is listed.
ENIL: The company has today commenced broadcast from its radio station at Asansol (95 FM) - acquired under phase 3 auctions.
Tata Steel: Tata Steel has acquired 1070,00,00,000 – 11.09 per cent non-convertible redeemable preference shares of face value ₹10 each of Tata Steel BSL Limited, aggregating to ₹10,700 crore, in two tranches.
Bajaj Auto: KTM Industries AG was informed by Pierer Industrie AG and Bajaj that they have started discussions on assessing the possibility of transferring Bajaj's 48 per cent stake in KTM AG to KTM Industries AG, with the Pierer-Group continuing to retain the controlling majority over KTM Industries AG. Pierer Industrie AG and Bajaj will now evaluate the proposals in detail. The transaction decision is targeted to be made in the second quarter of 2019.
Infosys: MeDirect Bank Belgium, the 'online only' bank, has extended its product offerings with Infosys Finacle.