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Weekly Report 19thAugust to 23rd August 2019.
Upcoming Week Nifty Movement:
Nifty 50 formed an indecisive Doji candle on the daily chart and a Hammer-like candle on the weekly chart on Friday, as the bulls fought back to dislodge the bears.
Indian market inched higher on the back of short-covering bounce on Wednesday supported by strong global cues. Global markets rose higher after the US delayed tariffs on some Chinese imports.
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Shield ResearchBack home, ease in inflation data for July also helped sentiment. The Nifty is back above 11,000 while the S&P BSE Sensex reclaimed 37,000 levels.
Barring healthcare index on BSE, all the other sectoral indices ended in the green with metal, bank, capital goods and oil & gas indices rising up to 3 percent.
Metal stocks logged healthy gains, buoyed by positive development on the US-China trade war. BSE Metal pack closed 2.68 percent up with shares of Jindal Steel (up 9.55 percent), Vedanta (up 4.87 percent) and Tata Steel (4.61 percent) as the top gainers.
Nifty forms a bullish harami pattern on the daily charts; a bullish harami pattern is formed at the bottom of a downtrend or near a significant support zone.
The sharp volatility (up and down) indicated that the market could remain rangebound in coming sessions unless index breaks the range of 11,145–10,901 on either side, experts say.
The long shadows on the daily charts seen in last two sessions, along with positive closes, suggest Nifty is in for consolidation with a near-term bottom in place around 10,900.
As long as the index sustains above the said low, one can expect a breakout above the 28-day-old descending channel, which is in progress from the July high of 11,981.
For the day, Nifty rose 18.40 points, or 0.17 per cent, to 11,047. The index hit an intraday low of 10,924 during the session.
The market saw wild swings in the truncated week, but the downside seems to be abating for the time being. Ugly corporate numbers are not be hammered, which means that the downside is capped.
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Shield ResearchThe short covering can take the Nifty 50 back towards 11,350. However, 10,780 should hold good in August, provided there is no negative surprise from the international markets.
Nifty, Pharma and Auto are showing divergences on MACD, indicating that downward pressure is subsiding, and that the bulls are slowing gaining strength respectively.
NIFTY WEEKLY INDEX LEVELS:Nifty CMP Pivot
PointSupport1 Support2 Support3 Resistance
1Resistance2 Resistance3
11047.80 11031.80 10917.60 10787.50 10543.20 11161.90 11276.10 11520.40
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Upcoming Week Bank Nifty Movement:
The Bank Nifty took reversal from 27,700 levels after forming positive divergence in RSI on daily time frame signify that 27,390 can be marked as a strong short-term bottom. Moreover, the sharp downswing appears to have brought the index into the oversold zone, suggesting some cooling-off of oscillators in the near term.
Yes Bank August 14 closed the qualified institutional placement (QIP) totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share (including a share premium of Rs 81.55 per share).
Auto major Mahindra & Mahindra (M&M) on August 17 announced the inauguration of its local automotive assembly plant near Colombo, Sri Lanka.
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Shield ResearchThe Enforcement Directorate has filed its first charge sheet in the IL&FS alleged illegal payment default crisis case even as it has attached assets worth about Rs 570 crore, officials said on August 17.
They said a prosecution complaint or charge sheet has been filed under provisions of the Prevention of Money Laundering Act (PMLA) before a special court in Mumbai on August 16.
The charge sheet details the roles of the directors and others in allegedly perpetrating the funds crisis and alleges corrupt practices were adopted by them that led to financial bungling.
TVS Motor Company on August 17 said its Singapore arm has invested $3.2 million in US-based Predictronics Corporation which specialises in providing end-to-end predictive maintenance analytics solutions.
TVS Motor (Singapore) Pvt Ltd, a wholly owned subsidiary, has signed definitive agreements with Predictronics Corporation, a US corporation, headquartered in Cincinnati, Ohio, the company said in a statement.
TVS Motor Company Board Member and CEO of TVS Motor (Singapore) Rajesh Narasimhan said, "We evaluated many companies globally providing Predictive Maintenance solutions and found Predictronics' product offerings and solutions to be a clear differentiator.
We are hence happy to invest in and strategically partner with Predictronics as they continue to deliver business improvements for Fortune 500 companies while leveraging them for our businesses.
IDBI Bank | Down 9 percent:- IDBI Bank has posted a net loss of Rs 3,800 crore for the quarter that ended on June 2019, as against a loss of Rs 2,410 crore for the same period a year ago.
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Shield ResearchThe net interest income (NII) of the company was down 11.1 percent at Rs 1,458 crore, down against Rs 1,639 crore in the same period a year ago.
The company's gross non-performing assets (NPA) were up 160 bps to 29.1 percent against 27.5 percent, while net NPA decreased 210 bps to 8 percent against 10.1 percent, QoQ.
In the absolute terms, the net NPA was down 26 percent to Rs 10,963 crore versus Rs 14,837 crore and gross NPA was up to Rs 51,657 crore against Rs 50,028 crore, quarter-on-quarter (QoQ).
Provisions for the June quarter were down to Rs 6,332 crore against Rs 8,532.78 crore, QoQ, while it increased from Rs 5235.96 crore year-on-year (YoY).
BANK NIFTY WEEKLY INDEX LEVELS:Bank Nifty CMP Pivot
PointSupport1 Support2 Support3 Resistance
1Resistance2 Resistance3
28217.00 28086.50 27814.10 27411.10 26735.80 28489.40 28761.80 29437.20
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Shield ResearchGlenmark Pharma | Down 15 percent:-
Glenmark's consolidated profit for the June quarter 2019 fell by 53 percent to Rs 109.28 crore as compared to the same quarter a year ago, but its figures are not comparable as the last financial year included a one-time forex gain of Rs 138.21 crore.
Consolidated revenue grew by 7.3 percent year-on-year to Rs 2,322.87 crore for the quarter that ended in June 2019.
The company's shares hit more than eight-year low as global brokerages cut its price target after weak June quarter earnings.
The stock lost 45 percent in the last nine months and fell up to Rs 360.35 intraday on August 16 — its lowest level since June 2012.
Reliance Industries | Up 10 percent:-
Shares of Reliance Industries posted the biggest one-day gain in last 10 years on August 13 after Mukesh Ambani promised to ensure the company has zero net debt by the next 18 months through the selling of stake and asset monetization.
We have a very clear roadmap to becoming a zero net debt company within the next 18 months that is by March 31, 2021," Chairman and Managing Director, Mukesh Ambani said while addressing company's 42nd Annual General Meeting on August 12.
His roadmap to become zero debt company include transactions with Saudi Aramco and BP, bring strategic and financial investors in consumer businesses, Jio and Reliance Retail, and unlocking options for real estate and financial investments.
TVS Motor Company on August 17 said its Singapore arm has invested $3.2 million in US-based Predictronics Corporation which specialises in providing end-to-end predictive maintenance analytics solutions.
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Technical Movement:
Hindalco Limited: -
Hindalco Limited: - Trend of the stock is bearish but sentiments are buying. It took support its previous breakout & bounce back. Next week if it sustains above 178 one can go for buying with stop loss at 166 for the targets of 185-200 Trend of the stock is up in weekly chart and strategy advised is buy on dips.
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Shield ResearchTechnical Movement:
Tech Mahindra Limited:-
Tech mahindra Limited: - Trend of the stock is bullish; it took support its previous breakout and also gave strong closing near it. Next week if it sustains above 655 one can go for buying with stop loss at 625 for the targets of 680-710 Trend of the stock is up in weekly chart and strategy advised is buy on dips.
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Previous ArchivesLAST WEEK RECO
STOCKSRECO PRICE TGT FOLLOW UP REMARK
HDFC Limited. 2200 2275-2360, SL 2115 Stop Loss Triggered Made High 2209.65, Closed at 2100
Balrampur Chini Mills Limited.
115 122-135, SL 105 Almost Done First Target 120
Made High 120, Closed at 119.25
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