Index trend and stocks in action June 18, 2019

The Nifty extended its southward journey for the second consecutive day on Monday and ended with loss of over one per cent below the 11,700 mark. The price action formed a significant bear candle carrying lower high-low, indicating extended sell-off. After registering a swing high of 12,000 on June 20, the index has lost over 300 points. As a result, the index has closed below the important moving averages, i.e. 20-DMA and 50-DMA, which is a short term bearish signal. Nifty has also breached the low of June 7 (11,770). If we look at the earlier retracement from the resistance, it has retraced twice by about 50-61.8 per cent. Now, the upswing from May 14 to June 3 is about 1000 points. If the history repeats, Nifty May correct up to the level of 11,600, which is 50 per cent retracement level and also the low of May 20 session. In any case, if these levels do not hold, there is a probability of filling the gap of May 20.

Reliance Industries: A minor fire broke out in the linear alkyl-benzene (LAB) plant at Patalganaga while restarting the plant from a routine maintenance shutdown.

Biocon: The board of directors of the company considered and approved the sale of branded formulations India business of the company on a ‘going concern’ basis to Biocon Biologics India. The consideration received from the sale is Rs 45 crore.

InterGlobe Aviation: IndiGo has announced today that it has ordered CFM International LEAP1A engines to power 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than US$20 billion at list price.

Hero Motocorp: The company has announced the appointment of Yerry Mina, the popular Colombian professional footballer, as its new brand ambassador.

Tech Mahindra: The investment committee of the board of directors of the company has approved the proposal to acquire 100% equity shares of Objectwise Consulting Group Inc. through a new entity to be formed under its wholly-owned subsidiary, viz., Tech Mahindra (Americas) Inc.