Nifty trend for Tuesday and stocks in news: Aster DM Healthcare, Infosys, Cipla, Hero MotoCorp and Vivimed Labs
One of the key pillars of the current rally in Nifty is Bank Nifty, which has a weightage of the early thirties in Nifty. On Monday, Nifty reclaimed its 12,000 mark for the first time after February 24 and at that moment as well, Bank Nifty was on song. However, Bank Nifty, which was the strongest pillar, started to crumble. And, when a pillar crumbles, everything that it holds, comes down with it. Hence, Nifty ended the session with modest gains of 17 points or 0.14 per cent at 11,930 while, Bank Nifty ended down by 0.56 per cent and only 3 of the components of Bank Nifty ended in green and that too, with less than a per cent of gain.
Before we begin, let us recall what we had mentioned in our last article. We had pointed out that the zone of 12,012-12,271 is a crucial resistance level and we advised our readers to adopt a cautious stance around this level. Likewise, on Monday, Nifty made a high of 12,022 and it ended almost 90 points down from the day’s high. Hence, this would have certainly helped our readers.
On Monday, the price action formed a small-bodied bearish candle with upper and lower shadow and in technical parlance, it’s known as a high wave candle. Usually, the formation of this candlestick pattern after an uptrend is used to refer to the market that has lost its sense of direction, and also that the prior trend is in jeopardy. However, like any candlestick pattern requires confirmation, this too needs one.
Let’s look into a lower timeframe (hourly) to assess the action of the market and understand what they are indicating for future direction. Firstly, Nifty has breached the rising steep trendline, which is formed by adjoining 10,790 and 11,221.50 level. Usually, a steep trendline indicates that price is moving with a lot of momentum and a break of this line indicates that this momentum is stopping; secondly, we observe a negative divergence on the hourly chart, and lastly, Bollinger Band is witnessing narrowing. Considering the above points, it reflects that the momentum has taken a hit and there are no signs of reversals yet. So in the near term, the index might oscillate in a range or move sideways with the level of 12,000 being a resistance level, while the level of 11,750-11,800 is likely to act as a strong support level.
Overall, the technical picture indicates that the index might be entering a phase of a breather or consolidation and the focus of the market would be now shifting towards stock-specific action as the earnings are likely to pick up the pace.
Aster DM Healthcare: Aster DM Healthcare Limited through its subsidiary, Dr Moopen’s Healthcare Management Services LLC, has acquired 3 per cent stake in Sanad Al-Rahmah Medical Care Company. Pursuant to the aforementioned acquisition, the shareholding of the company has increased from 97 per cent to 100 per cent.
Infosys: Infosys completes the acquisition of product design and development firm, Kaleidoscope Innovation.
Cipla: Avenue Therapeutics, Cipla’s step-down associate company in the USA, receives a complete response letter from FDA for IV Tramadol.
Hero MotoCorp: The company has introduced a new & special edition of the popular glamour motorcycle- Glamour Blaze.
Vivimed Labs: Vivimed Labs announced that it received approvals for 2 ophthalmic products from its state-of-the-art sterile ophthalmic facility and 2 oral liquid suspension products from PIC/S & Health Canada approved sites. Both the facilities are situated in Hyderabad and are expecting 5 more approvals in ophthalmic and oral solids in 04 CY 2020.