Index trend and stocks in action February 21, 2018

Nifty opened the session with modest gains and extended its upmove in the early part of the session, but later on, profit-booking emerged at higher levels and Nifty concluded the session near the day’s low. The price action formed a small body negative candle with an upper shadow, which indicates selling pressure at higher levels. Going ahead, the zone of 10,270-10,300 is a key support area as it is about 80% retracement of the upmove (10,007.48-11,171.55). In the coming sessions, if the index holds above the recent swing low of 10,276 on a closing basis, followed by some consolidation, it would lead to a pull-back rally. On the upside, immediate resistance is seen around the levels of 10,400-10,450. The daily RSI has a reading of 35, and on previous occasions, RSI has turned up sharply from these levels.  

Reliance Industries: RIL, through a subsidiary, has agreed to subscribe to a 5 per cent equity stake in NYSE listed Eros at a price of US$15 per share, which represents an 18 per cent premium to last closing price. The transaction is subject to customary regulatory and other approvals. Furthermore, RIL and Eros International Media Limited (Eros India) announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs. 1,000 crores in aggregate (approximately US$150 million) to produce and acquire Indian films and digital originals across all languages.

Max India: The company's equal joint-venture partner in the healthcare business, Life Healthcare Group Holdings Limited, South Africa (Life Healthcare), has initiated preliminary discussions with the company to explore the possibility of acquisition of Life Healthcare's shares in Max Healthcare Institute Limited by the company.

Dilip Buildcon: Dilip Buildcon has been declared L-1 bidder for a new EPC Project valued at Rs. 380.07 crore by the National Highways Authority of India in the State of Karnataka.

Nitin Spinners: Nitin Spinners approves preferential issue of 3.32 lakh equity shares at Rs 120.5 apiece to promoters.

Mawana Sugar: Mawana Sugar to acquire the entire stake of Usha International in Mawana Foods Private Limited for Rs 24.83 crore.

Bank of Baroda: The bank has exposure of Rs 456.6 crore to M/S Rotomac Global Private Limited under consortium arrangement with six other banks. The account was declared NPA by the bank on 03.10.2015 and has been 100 per cent provided for.