Index trend and stocks in action on November 8, 2017

As expected, Indian benchmark indices started off on a positive note on Tuesday, taking positive global cues and rising trend in oil exploration companies. However, soon markets witnessed a retreat led by tumbling stocks of oil marketing companies along with banking stocks. To add to it, despite fresh buying in IT majors, the not-so-good results of pharma major Cipla and US FDA’s warning letter to yet another major Lupin, dragged down the markets to close in the red with nearly 1% loss. All-in-all, markets have witnessed tremendous profit-booking after four consecutive record-breaking sessions. Technically, a retreat on the charts was supported by rising volumes and the 14-period RSI negative crossover in the overbought zone. Hence, going forward, if the correction continues, we hold 10,325 as the immediate support, followed by 10,240 for the Nifty. However, if Nifty bounces back from the current levels, we hold 10,395-10,415 as immediate resistances followed by 10,435. 

Eicher Motors: The company’s Royal Enfield brand, which is a global leader in mid-sized motorcycle segment, has unveiled twin motorcycles, the Interceptor INT 650 and Continental GT 650 at Milan. A total of 11 options have been developed by the company. Royal Enfield already holds 95% market share in mid-sized motorcycle segment. 

UFO Moviez India: The company recently announced that it has entered into an agreement to acquire 76% equity stake in Sujav Entertainment for a total consideration of Rs 75 lakh. Sujav has a business of online ticketing under the brand name FastTicket. 

JSW Steel: The Jindal-controlled JSW Steel is mulling to partner Piramal Bain Fund for a joint bid to acquire Bhushan Power and Steel which is undergoing insolvency proceedings. JSW Steel is now among the six companies selected for the same. 

PNB: One of the major public sector banks, PNB is likely to rationalise branch network by either closing or repositioning its loss-making 300 branches over the next 12-month period. The bank has around 6940 branches till September 2017. 

RCom: The telecommunication company under the ADAG Group, which is running not so well in recent days, is likely to renegotiate its deal with the Canadian Investment Fund Brookfield along with other bidders for selling its tower unit. It presented Zero Write-off plan, wherein lenders could swape the part of debt of Rs 45,000 crore against 51% equity stake.