Nifty trend for Monday and stocks in news: Lupin, GESHIP, ICICI Bank, Punjab Sind Bank and Asian Granito

Lord’s Cricket Ground, which is also known as ‘Mecca of Cricket’, hosted the finale of ICC Cricket World Cup 2019 and it was a nail-biting finish. Though the teams scored equal runs even after the super over, the tally of runs remained thereby, paving the way for the victory of England on boundary count. While for the other team i.e. New Zealand, it was so close yet so far movement.

Similarly, for the bulls, the 12,000 mark was so close yet so far movement as on Wednesday. Though it touched the 12,000 mark yet failed to close above this mark and for the rest of the week, it traded within Wednesday’s range to finally end at the 11,930 mark, up by 1.43 per cent on a weekly basis. Meanwhile, the broader indices outperformed the headline indices, which were in line with our expectation wherein, Nifty Mid-cap and Small-cap advanced 3.09 per cent and 2.65 per cent, respectively.

On Friday, Nifty formed a small-bodied bearish candle, carrying minor upper and lower shadow. It resembles a high wave or a spinning top candle. For the whole week, the index vacillated in 242 points and moreover, it oscillated within the high-low of the prior bar, which led to the formation of an inside bar on the weekly chart. Also, the last’s week range was almost 243 as well as the narrowest range out of the last four weeks. Hence, it led to the formation of an IB/NR4 pattern. US commodities trader, Toby Crabel identified that this pattern is an objective criterion for determining the phase of decreased range and volatility. Once an IB/NR4 is found, we trade the breakout as volatility resumes.

Hence, going ahead, the high and low of the last week, which stands at 12,018-11,775 are crucial levels to watch out for in the coming trading session. A breach of these levels on either side can lead to a trending move where on the downside, an immediate target could be around 11,660-11,610 zone, and on the upside; the target can be 12,150-12,220.

If one moves to a 60 mins chart, multiple patterns could be seen. One is an inverted head & shoulder pattern and the second one is an ascending triangle pattern, which usually forms during an uptrend as a continuation pattern. A move above the region of 12,025-12,040 would confirm a breakout of the bullish continuation pattern and until this happens, traders are advised to adopt a highly stock-specific approach.

The MACD line is above the zero line but the histogram declined in all trading sessions during the week, even though the market did not fall. The distance between price and the 20-DMA is down to 1.75 per cent. Bollinger band started narrowing because of this sideways activity. Moreover, the distance between 200 and 20-DMA is at January levels. These are only cautions and not signals to be bearish.

Amidst the range-bound move on the headline index, Nifty Metal index gained nearly 5 per cent for the week and was a standout performer. The index retraced nearly 78 per cent of its recent fall and moreover, it was on the verge of trend shift as defined by Dave Landry Bow-Tie pattern on the daily chart. Further, the MACD line crossed from below to above the signal line, which is considered bullish. So, one can look into stocks from this sector from a trading perspective.

All-in-all, the level of 12,025-12,040 is a sturdy wall of resistance and we advise that until and unless this level is cleared, look for stock-specific opportunities.

Lupin: The company has won five India Star 2020 Awards, conferred by Indian Institute of Packaging, under the category ‘Excellence in packaging, innovative design & development’ for five of its derma products.

GESHIP: Great Eastern Shipping Company Ltd (GESHIP) took delivery of a second-hand very large gas carrier namely ‘Jag Vishnu’ of about 77,922 cbm. The company had contracted to buy the vessel in Q2FY21.

ICICI Bank: The Monetary Board of Central Bank of Sri Lanka, having considered the request made by ICICI Bank Limited has granted approval to close down business operations of the bank in Sri Lanka and cancel the licence issued to it in terms of the provisions of the Banking Act, no. 30 of 1988, subject to certain terms and conditions.

Punjab Sind Bank: The bank has informed that an NPA Account, viz. IL & FS Financial Services Limited (IFIN) with outstanding dues of Rs 561.13 crore has been declared as fraud and reported to RBI as per the regulatory requirement. Further, the bank has already made 100 per cent provisioning as per the prescribed prudential norms, and the account is technically written off.

Asian Granito: The board of directors has approved the sub-division of shares from Rs 10 fully paid-up to Rs 2 fully paid-up.