Index trend and stocks in action September 16, 2019

The 50-share index Nifty staged a spectacular rally led by late hour buying on Friday session.  Nifty had formed a bearish engulfing candlestick pattern in the prior session i.e. on Thursday and there was no follow up selling to this bearish reversal pattern on Friday as Nifty took support around its 8-DMA and bounced back strongly to close near day’s high at 11,076 levels. The price action formed a sizable bullish candlestick.

At present, Nifty has reached near to the point of multiple resistance zone. There are several resistances in the 11,140-11,200 zone. Also, Nifty is forming an 'inverted head and shoulder' kind of pattern on the bottom with a positive divergence. The initial resistance neckline of the inverted head and shoulders pattern is placed at 11,146 level. In case Nifty is able to clear all these resistances, it will gain bullish strength. The targets are open towards the 11,370 level in the short term. Meanwhile, immediate support for the Nifty is 10,940 mark followed by the prior week low of 10,890. While, on the daily RSI Nifty has marked a fresh 14-period high, which is bullish. In a nutshell, as traders closely monitor the zone of 11,140-11,200, a breakout from this zone would result in a trending move on the upside.

Infosys: Infosys inaugurated Arizona Technology and Innovation Center.

M&M: M&M has informed that the company, as part of aligning its production with sales requirements, would be observing, ‘No Production Days’ during the second quarter of the FY 2019-20 in various plants as mentioned: Automotive sector: ranging between 8-17 days i.e. additional 3 days as compared to the disclosure made on 9th August and Farm Equipment Sector: ranging between 1-3 days.

Bharat Electronics: The company has signed a contract with Ministry of Defence, Govt, of India on 13th September, 2019 for procurement of Seven Squadrons of Akash Missile System for Indian Air Force. The total value of the contract is Rs. 5357.00 Crores.

PEL: Board of Directors approved raising of Rs. 500 crore via NCDs with an option to retain over-subscription of upto Rs. 300 crores, aggregating the total issue size to Rs. 800 crore.

PVR: The company has clarified with reference of the media report that it has received a notice on 31st August 2019 from Directorate General of Anti-Profiteering for initiation of the investigation under Rule 129 of the CGST tax Rules, 2017, in respect of its cinemas located in State of Telangana, seeking certain information/ clarifications. In this regard, the Company has already filed its response and provided relevant information/ documents as sought by the authorities.

Wipro: Company announced that it has been positioned as a leader in the IDC MarketScape: Worldwide Professional Services Firms for Utilities Customer Experience 2019 Vendor Assessment.

SML Isuzu: Due to subdued demand in the automobile sector, the company has decided to observe Block Closure (Chassis Division) for 6 days from 16th September to 21st September at its manufacturing plant Distt. Nawanshahr.

Monsanto India: The National Company Law Tribunal (NCLT) has on September 13 approved the scheme of amalgamation of Monsanto India with Bayer CropScience.