Index trend and stocks in action August 13, 2019
The recovery from the 61.8 per cent retracement level of Oct-June rally faced resistance at 200-DMA on Friday. Since Tuesday, Nifty formed higher lows on the daily chart. Nifty also faced resistance at 38.2 per cent level of July 17 to August 5 fall. But it closed above the 23.6 per cent retracement level June 3 to August 5 downswing. This is a very early signal of recovery. The rally attempt needs some more follow-through days to continue the rally. The bearish pattern, a shooting star, appeared at the multiple resistance levels, which is a concern for the coming days. Technically, we need to wait till Nifty closes above the 200-DMA (11167) to gain positive strength. A close above the 200-DMA will open up for an upmove towards the level of 11,245, followed by 11,350. Failure to hold above the 200-DMA will resume the weakness or sideways action in the index. On the downside, the level of 10,980 level can be seen as a support level.
Bharti Airtel: The company has clarified regarding the news report ‘SoftBank eyes stake in Airtel’ that there is no proposal for sale of stake in Bharti Airtel either directly or indirectly.
Reliance Industries: Saudi Aramco and Reliance Industries have agreed to a non-binding Letter of Intent regarding a proposed investment in the oil to chemicals (O2C) division comprising the refining, petrochemicals and fuels marketing businesses of RIL. Saudi Aramco’s potential 20 per cent stake is based upon an enterprise value of US$ 75 billion for the O2C division. This would be one of the largest foreign investments ever made in India.
SMS Pharmaceuticals: The board had earlier approved to set up a JV with Chemo, Switzerland. Considering the transaction costs involved in setting up a JV in Switzerland and the requirement to appoint a nominee director having Switzerland citizenship, it has been agreed between the JV partners to change the location to Spain and register the JV in Spain.
Sonata Software: Sonata Software has announced partnership with Agastya International Foundation to support creativity and innovative thinking in rural schools.
Torrent Pharmaceuticals: The company has received a communication from the USFDA classifying the inspection conducted at its Indrad facility in April, 2019 as Official Action Initiated (OAI). The company had already submitted its initial response to the USFDA and commitments given in response to Form 483 observations have been fulfilled. The company is sending further updates over receiving of this OAI letter. The company will be engaging with the regulator and is fully committed in resolving this issue at the earliest.
Praj Industries: Praj Industries has announced that it has entered into a cooperation agreement with Dedini S/A lndustrias de Base to provide ethanol production technologies to the Brazilian market. This paves the way for Dedini to market Praj's novel technology solutions to set up ethanol production facilities using grain-based feedstock and modernize existing ethanol plants in Brazil.
AIA Engineering: AlA Engineering has carried out its first trial at a major gold mine in Africa in July 2019. The company has informed that the trial has been conducted successfully. This solution now opens up unique partnership with mining customers across the world and convert them to the new solution.
IRB Infrastructure: Mhaiskar Infrastructure Pvt. Ltd, a wholly-owned subsidiary of the company, has successfully completed concession period of Mumbai-Pune project on August 10, 2019. Subsequently, this SPV has handed over the project to the MSRDC.
Indoco Remedies: Indoco Remedies has announced that its clinical research organisation, Anacipher, located at Hyderabad had undergone a walk-in surveillance inspection by the United States Food and Drug Administration (division of New Drug Bioequivalence Evaluation) from August 5 to August 9, 2019. The inspection successfully concluded without any observations and no form 483 was issued.