Nifty trend for Friday and stocks in news: Syngene International, Vodafone Idea, Emami and Mphasis

Nifty finally succumbed to selling pressure after a breath-taking rally of nearly 1,428 points from the lows of 11,535 to the highs of 12,963 in just 14-trading sessions. This can be attributed to weak cues from European equity markets as it bleeds red amid lockdown related fears. The Nifty 50 also recorded its sharpest fall since October 28 as it slipped nearly 1.30 per cent to close below the 12,800 mark. Despite recording such a sharpest fall, India VIX added meagre 2.35 per cent and is still trading below 20 mark, which indicates that there is no widespread panic in the markets. This could also be gauged from the fact that the advance decline ratio was not extremely negative but it slightly skewed in the favour of bears.  

But what is concerning is that, the main pillar (Bank Nifty) of the current rally plunged sharply. Moreover, all the components of the Bank Nifty ended in red. Having said that, if the leader starts to crumble, then a new leader should emerge to carry on the baton. And today, the defensive came into the picture as Nifty FCMG added 0.43 per cent and ITC was major contributor in the index. 

The price action of the day formed a small body bearish candle carrying an upper shadow indicating an emergence of profit booking from the new highs. In the technical parlance it is called as 'Shooting Star Pattern.'  The formation of this candlestick pattern is viewed as a bearish reversal candlestick pattern which usually occurs at the top of an uptrend. Moreover, for the first time in the last 14 trading sessions, index closed below its prior bar low and that too with the current candle carrying a long upper shadow, which is a sign of concern. With the Thursday's fall, index has partially filled the opening gap created on muhurat trading session.

Going ahead, the index has strong support placed in the region of 12,700 - 12,740 levels. As long as index stays above this zone, market participant should not panic. However, if it breaches this zone, it would invite further selling pressure and at the same time the panic would result into a rise in India VIX. At this point in time market participants should be cautious and should stay away from attempting to catch a bottom. Because if the index closes below 12,700 level, then it would retrace from 38.2 per cent of the current up leg which is placed around 12,417 levels and incidentally is near about the pre-pandemic all-time high level as well. 

The MACD has started to cool off from its historic high level on a daily chart. Further, the RSI which has moved below the 9-day EMA and the +DMI which shows the positive momentum, continued to decline. 

Overall, watch out for the 12,700 - 12,740 levels in the near term as sustaining above or below these levels could dictate the trend of the market in the near term.

Syngene International: Syngene International and Deerfield Discovery and Development Corporation (3DC), the drug discovery and development subsidiary of Deerfield Management Company (Deerfield), have signed an agreement to collaborate to advance therapeutic discovery projects, from target validation through to pharmacological proof of concept and preclinical evaluation. This five-year collaboration unites the core skills of the investment management company Deerfield, through its drug discovery and development arm 3DC, and Syngene’s integrated drug discovery (IDD) services.

Vodafone Idea: Vodafone Idea Limited has sold its 11.15% stake in Indus for a cash consideration of Rs. 37.6 billion in accordance with the terms of the agreement and out of the consideration received from Infratel, the Company has made a prepayment of Rs. 24 billion which will be adjusted in line with terms of the agreement.

Emami: The company has launched a complete range of home hygiene products under the brand name of 'EMASOL'.

Mphasis: The company has announced the acquisition of Datalytyx, a leading next-gen data engineering and consultancy company. Headquartered in London, United Kingdom, Datalytyx provides Next-gen Data Engineering, Data Ops and Master Data Management solutions on Snowflake and Talend environments to clients globally.