Index trend and stocks in action May 10, 2019
The Nifty opened the session on a negative note and it continued its slide thereafter and registered a low of 11,255. In the second half, the bulls made an attempt to bounce back, however, pullbacks were being used to exit positions and, as a result, Nifty ended in the negative terrain for the seventh straight session. The price action formed a high-wave like candle. The RSI has broken out of the historical support of 40 on Thursday. The MACD histogram is suggesting the downside momentum is picking up day-by-day. However, considering that the stochastic oscillator has already reached extremely oversold situation and the fall has extended to six days (the maximum was eight days earlier), the downside move may be limited in the short term. Nifty may try to consolidate for the next few days before taking another dip. The index has strong support in the zone of 11,180-11,230 as it has an unfilled upside gap (11,180-11,227) which was formed on March 12 and also 50 per cent retracement of the rise from February's low to April's high is placed in the region. In any case, if it falls below this level, Nifty may test 11,000 very fast. To move upside, the bulls need to move above 50DMA once again and sustain for at least two to three days. Only then the bulls will gain confidence. At the same time, bears need to protect 11,550 to control the market.
Reliance Industries: Reliance Brands, a subsidiary of Reliance Industries, and C Banner International Holdings, a Hong Kong listed company, signed a definitive agreement for Reliance Brands to acquire 100 per cent shares of Hamleys Global Holdings, the owner of the Hamleys brand, from C Banner International.
Edelweiss Financial Services: Edelweiss has announced Rs 3,000 million public issue of secured redeemable non-convertible debentures' by ECL Finance Limited, a subsidiary of the company.
Welspun Corp: Welspun Corp will consider proposal to buyback the fully paid-up equity shares of the company on May 14. Also, the company has received additional pipe orders of 103 KMT, which will be serviced from India.