Index trend and stocks in action April 04, 2019

The Nifty opened the session on a positive note and went on to test the record high level of 11,760. However, it could not sustain at the higher levels and came off about 130 points from the high point of the day and ended the day below the 11,700 mark, down by 0.59 per cent. The price action formed a long bearish candle resembling a bearish engulfing candle, which has been formed at the new all-time high level. Also, a classical double top formation has been witnessed with almost identical high in August 2018 and April 2019. In the coming session, the level of 11,620 is a crucial support level for the index and if the index fails to hold this support, expect corrective action to continue and the index may test level of 11,570, followed 11,500. In today’s session the outcome of RBI monetary policy will provide further direction to the markets. Market participants have already factored in a rate cut of 25 bps.

Reliance Industries: Reliance Industries has  announced that its subsidiary Reliance Jio Digital Services Limited has entered into a definitive business transfer agreement with Haptik Infotech Pvt Ltd. The transaction size, including investment for growth and expansion, is estimated at about Rs 700 cr, with Rs 230 cr as the consideration for the initial business transfer.

Gujarat Gas: The company has informed that PNGRB has issued letter dated March 29, 2019 for grant of authorisation to Gujarat Gas Limited for laying, building, operating or expanding the city or local natural gas distribution network in the geographical areas of Sirsa, Fatehabad and Mansa (Punjab) districts; Ujjain (except area already authorised) district, Dewas (except area already authorised) district and Indore (except area already authorised) district; Jhabua, Banswara, Ratlam and Dungarpur districts; Ferozepur, Faridkot and Sri Muktsar Sahib districts; Hoshiarpur and Gurdaspur districts; Jalore and Sirohi districts.

Godrej Properties: The company has announced that it has entered into a joint venture with a renowned developer to develop a 4.25 acre sea-facing property in the prime suburban micro-market of Bandra West, Mumbai.

Godrej Agrovet: The company has acquired additional 10.91% of the paid-up equity share capital of Godrej Maxximilk Private Limited, a subsidiary company, increasing its total shareholding in Godrej Maxximilk Private Limited from 52.06% to 62.97%.

Coffee Day Enterprises: The material subsidiary, Coffee Day Global Limited, has approved to enter into business transfer agreement with Coffee Day Econ Pvt. Ltd. (subsidiary of Coffee Day Enterprises Limited) to transfer the business of F&G division to Coffee Day Econ Pvt. Ltd. This is mainly to expand the business activities of F&G division.

Mahindra and Mahindra: The company has announced that it had become the first Indian tractor brand to rollout 3 million tractors.

SRF: A revocation order dated April 3, 2019, has been issued by Gujarat Pollution Control Board, and in compliance with the said order, the site at Dahej, Gujarat, should resume operations at the earliest.

Shriram Transport Finance: The board of directors of the company has approved upsizing the existing medium term note programme for Rs 5,000 crore to a global medium term note up to $2 billion by way of public/private issue of debt in the international markets. The board also approved external commercial borrowings up to $ 750 million.

CEAT: The board has approved the scheme of amalgamation between the company and its subsidiary.