Index trend and stocks in action July 31, 2019

Much along the anticipated lines, Nifty witnessed a positive opening and traded with positive bias in the initial hour of the trading session. However, as mentioned in our previous note, any bounce-back will be short-lived as the level of 11,320 is seen as a resistance level. Finally, Nifty ended the session down by 0.93 per cent at 11,085, the lower point in almost five months. The price action formed a sizeable bear candle carrying lower low-high and, in the process, it breached the swing low of May 2019 and the 200-DMA. Today’s session would be crucial for the Nifty. If the pullback is not visible and the index stays below the 200-DMA and if another two days of distribution is seen, it would mean we are seriously in a clear bear market. The 200-DMA, which stands at 11,144 level, would be crucial for the index and the index needs to crawl back above the 200-DMA as quickly as possible to avoid the weakness from getting worse. The RSI on the daily time frame slipped below the 30 mark and has marked a fresh 14-period low. It had gone below the 30 level in Oct. 2018. The bearish strength is very high as -DI is much above the +DI and the ADX. The ADX at 31.77 indicates that the bearish strength is strong.


Maruti Suzuki India: Ertiga (petrol) is now BS-VI complaint. This will result in price increase in all variants of Ertiga (petrol).

Cox & Kings: The company has defaulted on repayment of Rs 10 crore of commercial paper.  

RBL Bank: The bank has clarified that it has exposures to certain operating entities of the Coffee Day Group in the logistics, coffee and real estate businesses. The credit facilities that are largely working capital in nature are secured by primary securities, as well as some collaterals of land and marketable securities. All the loan accounts are standard and performing.

Alkem Laboratories: Regarding Form 483 issued by the US FDA containing four observations for the company’s manufacturing facility located at Baddi, the company' had submitted a detailed corrective and preventive action (CAP A) plan to the regulator within the stipulated timelines. The inspection has now been closed by the US FDA.

DHFL: The sale of entire stake held by DHFL in Avanse Financial Services to Olive Vine Investment Limited, an affiliate of the Warburg Pincus Group, has been completed.

Nitin Fire Protection Industries: The company, which is in CIRP process, has completed 270 days. Since no resolution plan has been received, the petition for national liquidation has been filed with Company Law Tribunal (NCLT), Mumbai, by the resolution professional appointed for the company.

Pfizer: Pfizer has been informed by its parent company Pfizer Inc., USA that Mylan N.V. and Pfizer Inc have announced a definitive agreement to combine Mylan with Upjohn, Pfizer's off-patent branded and generic established medicines business, creating a new global pharmaceutical company.

JSW Steel: The company has been declared as the "Preferred Bidder" for another three iron ore mines (Narayanpura Manganese & Iron Ore Mine, Dharmapura Iron Ore Mine and BBH Mines) in the auctions held by the Government of Karnataka in July 2019. The estimated resources of the aforesaid mines are around 92.97 MMT.