Index trend and stocks in action August 09, 2019

After oscillating in a narrow range in the first half of the trading session, Nifty gained sharply in the final hours and reclaimed its important psychological level of 11,000. The price action formed a long bull candle carrying higher high-low, with close above the 8-EMA. Nifty managed to stay above Tuesday’s low (August 6) of 10,814 yesterday as well as on Thursday. Hence, Thursday's session qualifies as day three of an attempted rally. Going ahead, a follow-through day is important to infuse further confidence among the market participants. Nifty has retraced just over 23.60 per cent of the recent downfall from July 17 high to August 5 low. In the coming session, if Nifty is able to sustain above the 11,080 level, it is probably heading towards the zone of 11,135-11,163, where it may find resistance as it is the confluence of 200-DMA and 38.2 per cent retracement of the current fall. The indicators are trying to come out of the oversold condition. The leading indicator RSI has broken out of falling wedge pattern, which is a bullish sign. The stochastic is indicating some positive strength with positive divergence.

HCL Technologies: HCL Technologies UK Limited, a wholly-owned subsidiary of HCL Technologies, is making a minority investment in Om Mobile Ventures (doing business as Kalido). This investment could provide HCL with an opportunity to expand network building capabilities and features to customers for the newly acquired IBM connections as well as HCL’s digital workplace solutions.

Marico: The company will further invest in Revolutionary Fitness Private Limited (Revofit) and will eventually hold up to 37 per cent of the post-acquisition paid up share capital of Revofit. This investment will happen over a period of next one year.

Yes Bank: The bank's QIP issue has opened and the floor price for the issue is fixed at Rs 87.9 per share.

National Aluminium Company: The company has informed that a joint venture agreement was signed with Mishra Dhatu Nigam Limited (MIDHANI) to incorporate a joint venture company with an objective for setting up of high end aluminium alloys plant for manufacturing of plates, sheets, etc.

Bodal Chemicals: The company has acquired 80 per cent stake in Sen-Er Boya Kimya Tekstil Sanayi Ve Ticaret Ltd, STI, by paying USD 4.5 million.