Index trend and stocks in action September 06, 2018

The price action remained very much on the anticipated lines. We had mentioned in our previous note that the level of 11,480-11,500 will act as an immediate support, and in the first half of trading session, the abovementioned level did act as a strong support. We had also mentioned that the index slipping below this zone may take it towards the level of 11,400, and the index did test our ultimate downside level from where it bounced back to end above 11,450.  The price action formed a small body negative candle along with a long lower shadow, and this pattern resembles a hammer-type candle, but it is not a textbook hammer pattern. Going ahead, the level of 11,390-11,400 is likely to act as immediate support for the index. On the upside, immediate resistance for the index is seen around 11,505, which is its 21-day EMA, and sustaining above this level may result in further upmove up to the levels of 11,530-11,550. 

Aurobindo Pharma: The company’s wholly-owned subsidiary, Aurobindo Pharma USA Inc., USA, has entered into an agreement to acquire commercial operations and three manufacturing facilities in USA from Sandoz Inc., USA, a Novartis Division. 
  
Nandan Denim: Nandan Denim Limited (NDL), India’s largest denim fabric manufacturer, has announced that the application made by company for the sanction of various incentives (interest, power, VAT/GST) under Gujarat State Textile Policy 2012, has been approved. 
  
Alembic Pharmaceuticals:  The meeting of the board of directors of the company is scheduled on September 10 to consider the proposal for issue of non-convertible debentures on private placement basis. 
  
Persistent Systems: The company has acquired Herald Health, a start-up created to transform the data overload swamping healthcare professionals into clear and actionable insights. 
  
Welspun Corp: The company's board has approved the merger plan of Welspun Pipes with itself . 
  
PSP Projects: The  company has received work orders worth Rs 226.07 crore (on a standalone basis) from various clients for industrial and Institutional projects. 
  
Bharti Infratel:  Subsequent to the completion of Vodafone-Idea merger and their scheme becoming effective, Bharti Infratel and Indus Towers Limited, where the company holds 42 per cent equity, have received exit notices, which would result in exit of 27,447 co-locations for the company on a consolidated basis. These co-locations contribute 13.7 per cent of the total co-locations on a consolidated basis as on June 30, 2018.  
  
Bharti Airtel: The transfer of shares in Bharti Telemedia (a subsidiary of the company) to an affiliate of Warburg Pincus has been completed.