Markets confirmed major trend reversal after Sensex closed below long-term support of 64,836 thus activating a bearish engulfing line on a monthly candlestick chart. This move is significant as most of long-term investors may use this signal for long liquidation unless a new buy signal emerges on a monthly basis. The immediate downside projection is seen 12% lower which turns out to be 57,084 in Sensex based on long-term charts. FII for the month has sold Rs 20,000 Cr in the spot market and Rs 23,000 cr in the Futures segment which clearly shows how aggressive derivatives of Nifty 50 may have been used to hedge positions in a broader portfolio. Adding to it, Brent Crude also has managed to post monthly closing above USD 86 which is likely to accelerate momentum further for a short-term upside of USD 100.
Nifty 50 Chart
Stocks To Watch
Positive Read Through
- Cipla – According to sources Torrent has likely submitted a non-binding bid for company.
- Guj Gas – Hikes industrial gas price by Rs 2.5 to Rs 43.33/scm from Rs 40.83/scm with effect from 1 September.
- Bata – At the Southcan unit in Karnataka, the company introduces VRS for eligible workmen.
- ONGC, Oil – On prospects of tighter supplies crude rises, Brent at USD 87/bbl.
- Concor – The government appointed Sanjay Swarup as the chairman & MD of the company.
- Hcl Tech – Sets to acquire German Automotive Engineering Services company, asap group.
- Five Star Fin – According to sources PE investors may sell up to 8.8 pct via block deals.
- TV18 Viacom18 – wins Bcci TV, digital rights for 5 years with Rs 59,630 mn bid.
- Itd cementation – Marine contract worth of Rs 32,900 mn bagged by the company.
- Genus Power – Arm Genus Power Infrastructures, wins an order worth Rs 22,474 mn.
Negative Read Through
- Torrent Pharma – According to sources the company is likely to have submitted a non-bidding bid for Cipla.
- Balaji Amines – The Company reported a decline in sales by 31 pct at Rs.4,630 mn vs. Rs 6,700 mn, Margins stood at 21.1 pct Vs 31.9 pct YoY.
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