Index trend and stocks in action July 15, 2019
After opening the session on a flat note, Nifty extended its up move and logged intra-day high of 11,639. However, it failed to hold on at higher levels, and in the last leg of the trading session, volatility played its part and the Nifty lost about 90 points from the day’s high and settled at the level of 11,552.50. The price action formed a small body bear candle with an upper shadow. Technically, this pattern indicates lack of strength in the index to sustain at higher levels. The zone of 11,600-11,650 is acting as a strong hurdle for the index as per the concept of change in polarity. Going ahead, only a sustainable move above this area could trigger a possibility of the upmove. Till then, Nifty is expected to oscillate in the 11,426-11,650 range for a few more days before taking a direction. Be cautious and avoid taking aggressive long positions.
Tata Steel: Tata Steel India’s Q1FY20 production increased by 20 per cent YoY with consolidation of Tata Steel BSL for the full quarter and higher capacity utilisation at both Tata Steel standalone and Tata Steel BSL. Q1FY20 sales volume improved by 16 per cent YoY primarily with consolidation of Tata Steel BSL for full quarter. In Europe, Tata Steel Q1FY20 production was impacted by planned shutdowns and unplanned outages during the quarter. This, coupled with sluggish demand, affected the sales volumes in Q1FY20.
Indusind Bank: The bank has informed that S.R Batliboi & Co LLP. Chartered Accountants, have tendered their resignation as statutory auditors of the bank with effect from July 10. The reason for the same was that the RBI in terms of its Enforcement Action Framework had decided not to approve S.R Batliboi & Co LLP. for carrying out statutory audit assignments in commercial banks starting from April 1 2019.
BHEL: BHEL has won an order for setting up a 25 MW floating solar photovoltaic (SPV) power plant on engineering, procurement and construction (EPC) basis at Simhadri in Andhra Pradesh. Valued at over Rs.100 crore, the order has been placed with BHEL by NTPC Ltd.
FEL: Dinesh Maheshwari, CFO and executive director of the company, was appearing before the senior intelligence officer, Directorate of Revenue Intelligence (DRI) representing the matter related to enquiry about usage of facility of duty free imports from Bangladesh under South Asian Free Trade Area (SAFTA). In exercise of the discretionary powers, the authorities arrested him late Friday night in this matter.
Allahabad Bank: The bank has reported that on the basis of forensic audit investigation findings and CBI filing FIR, on suo moto basis, against the company and its directors, alleging diversion of funds from banking system by the bank's borrower, namely Bhushan Power and Steel Ltd. (BPSL), a fraud of Rs 1774.82 core has been reported by the bank to the Reserve Bank of India. The bank has already made provisions amounting to Rs 900.20 crore against the exposure of the bank in BPSL.
Adani Ports: The board of directors of the company has approved issuance of USD denominated foreign currency bonds which may be issued in one or more tranches overseas. The total amount raised will not exceed USD 700 million.