Index trend and stocks in action August 28, 2019

The Nifty extended its upmove for the third straight session and ended the day above the 11,100 mark. The price action formed a Doji candlestick pattern, indicating that the index is taking a breather after the rapid upmove. A rally of about 4.5 per cent from the recent lows in the last three trading sessions has taken the Nifty above the short term moving average. The Nifty has moved above the 8-EMA and 20-DMA. Also, Tuesday’s action qualifies as day three of an attempted rally and the status of the index is changed to a rally attempt from a downtrend. Going ahead, it is important to see a follow-through day, and talking above the levels, the zone of 11,150-11,200 is likely to act as a stiff resistance as it is a confluence of 38.2 per cent retracement of the decline seen from July 5 and the last three week’s high placed at 11,181 and the 200-DMA (11,203). In case Nifty moves above this resistance zone, we may witness a rally up to the level of 11,383 where the medium trend indicator 50-DMA is placed. In case Nifty falls below 11000 and sustains for at least two days, then there are chances of going back to the recent low.

Oberoi Realty: The company has informed that the Income Tax team has left their premises and normal day-to-day business activities have resumed fully.

Power Grid Corporation: The board of directors of the company has accorded investment approval for transmission system for solar energy zones in Rajasthan at an estimated cost of Rs 2578.47 crore with commissioning schedule in December 2020.

Dilip Buildcon: The company has received the appointed date, i.e. August 24, for project Saoner-Dhapewada, EPC project in Maharashtra worth Rs 480.06 crore from the NHAI.

Premier Explosives: The company's new solid propellant plant at Katepally, near Hyderabad, has been inaugurated on Friday, August 23, 2019

DHFL: The board of directors will consider issuing shares after debt conversion on August 30.