Index trend and stocks in action June 07, 2019

The Nifty opened the session on a flat note and started correcting right from the word go. Market participants were eagerly waiting for the outcome of RBI’s policy but the rate cut of 25 bps failed to cheer market participants and a secular sell-off was seen. Finally, Nifty ended the session near the lowest point of the day. Nifty breached the 11900 level and closed below the 8-EMA, after forming an inside bar and bearish harami pattern at the lifetime highs and following up with a sizeable bearish candle carrying lower high-low. This has given the first caution to the long positions. When the index is making new highs, the major indicators are unable to move above the prior swing highs. This negative divergence has been persisting for the last four swing highs. Even as the price is moving higher, the MACD histogram is coming down for the last 6 days. This is another evidence to identify the downward momentum. The price is down by more than 1.4 per cent on increased volumes. The Nifty has also closed below the June 3 (range breakout day) low, which is also the earlier resistance area on the hourly chart. With these evidences, the market may witness further correction as long as it trades below the 11960 level. The next major support level is placed at 11615-11630, which is also 50-DMA.

Bharti Airtel: OYO Hotels & Homes, South Asia's largest, China's second largest, and the world's sixth largest and fastest-growing chain of leased and franchised hotels, homes and living spaces and Bharti Airtel, India's leading telecommunications services provider, have partnered to launch OYO Store on Airtel Thanks App.

JSW Steel: JSW Steel has agreed to acquire, by itself and through its nominees, 10,000 shares of Rs 10 each, comprising the entire issued and paid-up share capital of Piombino Steel Limited from JSW Techno Projects Management Limited.

Wipro: The divestment of Wipro’s Workday and Cornerstone OnDemand business in Portugal, France and Sweden has been completed and the company has received the remaining consideration of USD 4.73 million towards the same.

Cyient: The company has announced strategic investment in Cylus, a global leader in cyber security solutions for the rail industry.

Infosys: Infosys has collaborated with Microsoft to accelerate digital transformation and innovation in smart buildings and spaces.