Index trend and stocks in action July 05, 2019
The Nifty extended its upmove for the fourth straight session on Thursday and ended the day up by 0.18 per cent at 11,938. The price action formed a small body bull candle having an upper shadow. Nifty finally closed above the 61.8 per cent level of the prior downswing. Just before the crucial event of the Union budget, the index traded in a narrow range for the last two days. The volumes have also declined as traders adopted a cautious approach. However, the indicators are giving some positive signals before the major trigger point. The MACD is above the signal line and the positive momentum is picking up. The RSI (58) is near the bullish level of 60. But, interestingly, the last hour profit-booking is clearly indicating traders' cautious approach. On the hourly chart, it is crawling around the channel resistance. The last hour volumes have also increased on a price decline, which indicates the distribution. The key is how it will react to the budget and where it closes. Friday's close will give a clear picture of the future direction. As long as it is above the 11,920 level, the targets are open towards 12,100-12,200. However, a close below 11765 will lead to the re-test of the swing low of 11,625. One thing is certain that the market will experience higher volatility on the budget day. So, be careful while trading.
L&T Infotech: The company has clarified that the news article in the media is speculative in nature. The company has not been subjected to any inquiry by US CIS as alleged. The company conforms to the highest levels of corporate governance and ethics and has proven processes in place for immigration and an impressive track record of compliance all over the world.
Godrej Industries: The company has completed the sale/transfer/disposal/divestment of Natures Basket Limited (100% subsidiary) to Spencer's Retail limited.
GMR Infrastructure: GMR Infrastructure Ltd has announced the signing of definitive share purchase agreement with Adani Power Ltd for the sale of the entire stake of 47.62% in GMR Chhattisgarh Energy Ltd held by its wholly-owned subsidiary GMR Generation Assets Limited.
L&T Finance Holding: L&T Finance, the wholly-owned subsidiary of L&T Finance Holdings Ltd., will receive $550 million in an ECB investment round anchored by IFC, a member of the World Bank Group, and BNP Paribas, Citibank, and DBS Bank Limited.
Sobha: During the Q1 of FY19-20, the company has achieved new sales volume of 1,063,632 square feet in total valued at Rs. 7.78 billion, with a total average realisation of Rs. 7,312 per square feet (Sobha's share of sales value is at Rs 6.61 billion). The sales volume is up by 11% as compared to the corresponding quarter of the last year. Bengaluru continues to perform well and is well-supported by other regions.