Index trend and stocks in action February 05, 2018

Last Friday turned out to be a ‘Black Friday’ for Nifty as the index tanked over 250 points and slipped below 10,800 mark. The daily price action led to formation of a sizeable bear candle with wide high-low range of around 10,955-10,736. On the weekly time scale, there is a formation of ‘bearish engulfing’ candle. Going ahead, the levels of 10,840-10,850 will act as fierce resistances for the Nifty on the upside, whereas on the downside, any declined below Friday’s low of 10,736 will see the market going into some more correction up to the level of 10,670 followed by 10,600. The RSI has dropped sharply lower and, at present, it is placed around 48 level. In the last couple of instances, we have witnessed a drop of up to the levels of 33-35 on the RSI and, from thereon, Nifty has witnessed a reversal. Hence, this could mean a possibility of more weakness in the short term in the Nifty.

Bharti Airtel: Bharti Airtel announced that Singapore Telecommunications (Singtel) will invest Rs 2649 crores in Bharti Telecom Limited ("Bharti Telecom"), the promoter company of Airtel through preferential allotment of shares. The transaction is subject to the shareholders’ approval of Bharti Telecom. The funds raised will be used towards debt reduction. 

GAIL: GAIL places order of Rs. 440 crore for 350 km Vijaipur (UP) - Auraiya (MP) spurline and Rs. 3500 crore Capex for City Gas Distribution in FY 2018-19. 

Speciality Restaurants: Resumption of operations of 'Mainland China' restaurant by Speciality Restaurants Limited (the 'Company') located at South City Mall, Kolkata. 

Cera Sanitaryware: Cera sanitaryware to further explore the proposal to hike stake in Dubai arm. 
  
Tata Steel: Tata Steel has concluded acquisition of 74% Equity shares of Bhubaneshwar Power Private Limited. 
  
Avenue Supermarts: Avenue Supermarts completes acquisition of 4.35 crore equity shares in Avenue E-Commerce for Rs 49.2 crore 
  
GMR Infrastructure: GMR Infra to acquire 4.15 crore shares (11 percent) in GMR Hyderabad International Airport for $76 million (approx. Rs 484 crore). 
  
NBCC: Letter of Approval to NBCC from the Government of Assam for construction of Twin Tower Trade Centre at Guwahati, Assam amounting Rs 2000 crore(approx.) 
  
Uflex: Board meeting to be held on Wednesday 7th February, 2018 to consider raising for funds.