Index trend and stocks in action August 16, 2019
The Nifty opened the session on a positive note and, as the day progressed, it added to its gains. However, in the last hour of trading, it pared some of its gains and ended the day higher by 104 points at 11,029. The price action for the day formed an inside bar on Wednesday as Nifty moved in a counter-trend consolidation pattern since August 6 forming a flag pattern. As the volumes are also decreasing, which is one of the pattern characteristics, the current counter-trend is definitive for the short term only. After facing resistance at 200-DMA, it fell sharply on Tuesday. Earlier, this kind of counter-trend consolidation was limited to 6 days. Now we are already on day 6 and for any confirmation for the prior trend, Nifty needs to close below the prior day low. In case Nifty closes below the Wednesday low of 10935, it would mean a flag breakdown. To continue the bullish strength, it needs to move above the 200-DMA as well as Friday’s high of 11182 decisively. As long as it trades between 11182-10935, traders may not get clear trading opportunities. Wait till these levels break for clear trading opportunity. The RSI has not made any significant swing in this counter-trend.
PVR: The company has opened 3-screen multiplex at GMS City Centre, Madhya Pradesh, under its sub-brand “PVR UTSAV”. This multiplex is equipped with BARCO 2K projection system, UHD 3D technology and Dolby digital sound. With this launch, PVR now operates the largest multiplex network with of 797 screens at 169 properties in 68 cities.
Sun Pharmaceuticals: Sun Pharmaceuticals has entered into a global licensing agreement with the CSIR Indian Institute of Chemical Technology, Hyderabad (CSIR-IICT), for patents related to certain compounds with potential therapeutic activity across multiple indications in Sun Pharma’s specialty focus areas.
Coffee Day Enterprises: The board of directors has approved the disinvestment of Global Village Tech Park in its subsidiary, Tanglin Developments Ltd, in favour of Blackstone. The transaction valuation is about Rs 2600-3000 cr and the company has entered into a non-binding letter of intent.
Voltas: Voltas Beko has launched India’s first 5-Star rated washing machines.
BOSCH: In order to align production with sales requirements, the company at its various plants belonging to powertrain solutions division, would be observing 'No Production Days' ranging up to 10 days per month during the second quarter of the FY2019-2020.
Time Technoplast: Aburi confirmed in writing to various agencies including Economic Offences Wing (EOW) that the complaint against the company and its director together with senior officials of TUV Rheinland (India) had arisen out of some misunderstanding. Aburi went on to withdraw its complaint and confirmed the same in the High Court, Mumbai.