Index trend and stocks in action May 24, 2019
The Nifty, right from the word go, was buoyed as the BJP-led NDA took a head start, and as the counting progressed, the early gains were extended. Soon, it was celebration time as market participants saw a new milestone of 12,000 mark on their screens. But the second half of the trading session presented a scary scene on the D-Street as Nifty not only wiped out all the gains, but also went on to close below the 11,700 mark. The price action formed a sizeable bearish candle. The last trading session has remained technically significant as, despite a very favourable outcome of the general election and the Nifty touching an all-time high level of 12,041, it failed to confirm a breakout as Nifty failed to close above the 11,850 mark. Also, now Nifty has moved from 11,108 on May 14 to 12,041 on May 23 and, interestingly, it has already retraced about 38.2 per cent of the upmove. In the coming session, the Monday session low of 11,592 is the key support level and if Nifty fails to hold this support level, it will fill the gap of May 20. On the higher side now, the zone of 11,820-11,850 is likely to act as a critical resistance for further upmove.
Infosys: The company has announced that it has completed the formation of a strategic partnership with ABN AMRO in the Netherlands by acquiring 75 per cent of the shareholding in their wholly-owned end-to-end mortgage administration service provider Stater N.V.
MOIL: MOIL has signed a Memorandum of Understanding (MoU) for FY2019-20 with the Ministry of Steel. The MoU envisages an ambitious production target of 14.75 lakh tonnes of manganese ore and capex target of Rs. 210 crore, besides other parameters related to turnover, financials, project implementation, R&D, human resource management, etc.
CIPLA: Cipla has signed an agreement on May 23, 2019, to acquire 26 per cent stake on a fully diluted basis in AMPSolar Power Systems Private Limited.
Greaves Cotton: Greaves Cotton has modified its share buyback plan. The board has approved buyback of 5.32 per cent of share capital at Rs 175 per share for an aggregate consideration not exceeding Rs 227.50 crore.
Reliance Nippon Life Asset Management: The promoter Reliance Capital proposes to sell up to 3,21,10,091 equity shares (5.25 per cent) of Reliance Nippon Life Asset Management at a floor price of Rs 218 per equity share through an open offer for sale.
Radico Khaitan: The Central Pollution Control Board (CPCB) has revoked the closure directions dated Feb 18, 2019. CPCB directed the company to restrict its capacity of molasses plant for country liquor from 200 KLD to 77 KLD until June 30, 2019. The CPCB has also levied an additional environmental compensation of Rs 1.18 crore. These moves will not impact IMFL manufacturing operations of the company, while the impact on the country liquor manufacturing is expected to be minimal.
Om Metal Infraprojects: The company has partly divested its investment in its packing division, a non-core business, by sale of a machine at approved valuation.
Zensar Technologies: Zensar has enabled Sanlam to deliver company-wide digital transformation.