Index trend and stocks in action May 21, 2018

NSE benchmark Nifty reported its fourth consecutive downfall and settled below its important psychological 10,600-mark. The price action of the day led to the formation of a bear candle carrying lower high, lower low, indicating extended sell-off. Going ahead, the zone of 10,550-10,560 is a key support for the Nifty as it is a confluence of 50-day EMA and 50 per cent retracement of the downmove from the all-time high levels to the lows formed in the month of March. Holding on to this crucial support level in the short term could lead to revival in the markets. On the upside, the level of 10,630-10,650 is likely to act as a resistance zone and a sustainable move above this zone could take the Nifty up to the levels of 10,700-10,720.  

South Indian Bank: Bank has informed that the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 50 million on the bank for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms, Know Your Customer (KYC) norms and treasury function and for deficiencies in compliance function and compliance culture.

AU Small Finance Bank: AU Small Finance Bank to raise Rs 1,000 crore from Temasek via share sale.

Century Textile: Century Textiles to demerge cement division and merges it with UltraTech Cement.

Indoco Remedies: Sucessfuly completed USFDA inspection of API manufacturing facilities at Patalganga and Rabale, Navi Mumbai. The Kilo Lab facility received zero 483s from the agency, while its API plant at Patalganga cleared the inspection with 3 observations; none of them are critical or pertain to data integrity.

Alembic Pharmaceuticals: Alembic Pharmaceuticals gets one Form 483 observation on Karkhadi API unit.

Endurance Technologies: Based on the Eligibility Certificate, and subject to certain conditions and compliance, the Company is entitled to incentive to the extent of Rs. 2831.16 million on the investments made in fixed assets during the period from 1st April, 2013 to 30th September, 2017.

Indiabulls Real Estate: Indiabulls Real Estate to buy back 2.6 crore equity shares (5.45 per cent) at Rs 240 each.