Index trend and stocks in action September 03, 2019

The Nifty opened the session with an upside gap and made an attempt to move up in the early part of the session. But it failed to capitalize on the early gains and slipped into intra-day weakness from the highs. The second half of the session saw the index recovering from the low point of the day and ended the session near the day’s high. The price action formed a bull candle with a long lower shadow. Also, the index has managed to close above the 21-DMA. In the coming session, the index needs to cross the hurdle posed by the zone of of 11,150-11,200 as there are several resistance points within the 11,150-11,200 zone. In the zone of 11,140-11,150, there were many supports and resistances earlier. 11,181 is the swing high of the recent past and the 200-DMA is placed around 11,210. As long as these levels are violated, the market will be in the grip of the bears. In case it closes below 10,900 on a weekly basis, the chances of re-testing the prior week low are high.

PNB: A meeting of board of directors of the bank is scheduled on September 5 to consider the amalgamation of the Oriental Bank of Commerce and United Bank of India into Punjab National Bank and to consider capital infusion up to Rs 16500 crore by the Government of India by way of preferential issue of equity shares.  

Biocon: The US FDA has issued complete response letter for new drug application for insulinGlargine. The commercialisation plans will remain unchanged.

IOL Chemicals and Pharmaceuticals: The company has made a pre-payment of term loan of Rs 7.99 crore to bank in addition to the scheduled repayment. With this, the company has pre-paid the term loan of aggregate of Rs 115.69 crore till date (i.e. Rs 95.64 crore during the current FY and Rs 20.05 crore in the previous FY) to reduce the term debt.

Dilip Buildcon: Dilip Build has entered into agreements with Cube Highways and Infrastructure III Pte for sale of five under-construction Hybrid Annuity Model (HAM) projects.

Tata Steel: Tata Steel has signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation. Furthermore, Tata Steel has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles

SPML Infra: The company has received new project orders worth Rs 1774 million [including of GST and taxes in the net order value of Rs 1503.42 million).

M&M: The company has signed a share subscription and shareholder agreement for subscribing up to 55 per cent of the equity share capital of Meru Travel Solutions Private Limited in tranches.

Divis Laboratories: Divi's Laboratories Limited, Unit-2 Vishakhapatnam, has been inspected by five inspectors from HPRA (Ireland) and JAZMP (Slovenia) from August 26, 2019 to August 30, 2019. The inspection at the site was focused on general GMP. The inspection has concluded successfully with no critical observations.

Canara Bank: The bank has received a communication from the Ministry of Finance, Government of India, that the alternative mechanism (AM) after consultation with Reserve Bank of India (RBI), has decided that Canara Bank and Syndicate Bank may consider amalgamation of the Syndicate Bank into Canara Bank.

Union Bank of India: The bank has received a communication from Ministry of Finance, Government of India, stating that the alternative mechanism (AM) after consultation with Reserve Bank of India has decided that Union Bank of India, Andhra Bank and Corporation Bank may consider amalgamation of the Andhra Bank and Corporation Bank into Union Bank of India.

Indian Bank: The bank has received a communication from Ministry of Finance, Government of India, stating that the alternative mechanism (AM) after consultation with Reserve Bank of India has decided that Indian Bank and Allahabad Bank may consider amalgamation of the Allahabad Bank into Indian Bank.