Technical stocks to buy: Tata Power, UBL show further rally on charts; check Nifty support, resistance levels By Shrikant Chouhan Tuesday was a volatile trading day. If we calculate the intraday variation, the Nifty/Sensex moved up and down by 750/2200 points. On a daily basis, the market has formed an indecisive pattern and based on that upward activity is not ruled out. On that basis, levels of 14790/49600 and 14820/49700 will be important. If the level of 14820/49700 is decisively crossed, the Nifty/Sensex can jump up to 14950/50100. If it goes below 14540/48800, then the Nifty could drop to 14450/48550 and 14350/48350 levels. Wednesday is an important day for the market and a level based trading approach should be followed. For the Bank-Nifty, 32250 and 32700 should be the trading range. Expect trending activity above and below the given levels. Be stock specific in the market. BUY, CMP: Rs 104.7, TARGET: Rs 111, SL: Rs 101 The stock had shown a phenomenal up move from the levels of 70 till 114 without any significant correction however 114 becomes the obstacle due to double top kind of a formation which resulted in a price drop, nevertheless recent range bound movement with incremental volume points at good accumulation by bulls for the continuation of an uptrend. Pidilite Industries BUY, CMP: Rs 1,874.4, TARGET: Rs 1,970, SL: Rs 1,830 In the past last three months, the stock was trading in a rectangle formation forming a strong base for the counter, subsequently, a fresh breakout with a strong bullish candlestick pattern along with pick up in volume indicates a new leg of upward movement in the near term. Cadila Healthcare BUY, CMP: Rs 456.5, TARGET: Rs 480, SL: Rs 445 On the weekly scale, the stock was into a sloping channel after making the highs of around 500, eventually, its downward move stopped near the multiple support zone of 420 and the strong rebound is seen in the counter with an increase in volume activity, recent trend line breakout confirms bullish momentum to remain in the coming time horizon. United Breweries Ltd BUY, CMP: Rs 1,109.95, TARGET: Rs 1,170, SL: Rs 1,070 After the remarkable up move from the levels of 900 till 1320, the stock faced multiple resistance into the supply zone of 1300-1320. As a result, we observed a substantial drop in the share price. Nevertheless, it seems that the worst is behind as the stock is near to its important Fibonacci retracement zone. Hence we expect a strong up move from current levels. (Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)
The Japanese pharma major is also filing a plea before the Delhi HC seeking appointment of forensic auditors to analyse transactions involving IHH, Fortis Healthcare and RHT, Singapore, as directed by the HC on October 18.
The development is likely to create legal hurdles and delay the proposed open offer as IHH had recently told FE that it could only go ahead if Sebi agreed with its legal interpretation that the SC’s September 22 order has lifted all such restraints.
IHH managing director and CEO Kelvin Loh told FE on November 9 that the company would like to go ahead with the open offer “as soon as possible” as there has already been a delay of four years. Ravi Rajagopal, chairman of Fortis Healthcare, had added that their legal counsel has advised that the company can go ahead with the open offer as the SC order has disposed of various appeals, including the suo motu contempt. “We have represented to the Sebi and the matter is with them,” Rajagopal had said.
However, legal observers told FE that the matter is not that straightforward and simple as the Delhi HC has to take the final call on the matter of open offer as well as whether a forensic audit has to be done in the share sale which was executed in 2018.
Also Read: IHH to float open offer for Fortis if Sebi concurs with our legal view: MD & CEO
Loh and Rajagopal had said the possibility that the matter may take a different turn when it comes up in Delhi HC cannot be ruled out.
IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for Rs 4,000 crore through the bidding route. It had also earmarked Rs 3,000 crore to make an open offer for an additional 26% to the public shareholders as required under the law.
Daiichi has written to Sebi that the SC in its September 22 order had asked the HC to consider ordering a forensic audit into the dilution of FHL shareholding, repeated violation of undertakings and assurance by former FHL promoters — Malvinder and Shivinder Singh — and the transaction between FHL, IHH and the clandestine transfer of Rs 4,666 crore to RHT Singapore.
Daiichi is “severely prejudiced” with IHH’s clandestine attempt to subvert the status quo order directed by the SC on December 14, 2018, and September 22 with respect to the conduct of forensic audit and the pending proceedings before the HC by purportedly consulting regulatory authorities, including Sebi, on the proposed FHL-IHH transaction. It has reiterated that the FHL-IHH transaction was currently sub-judice before the HC where FHL is also a party, its solicitors, P&A Law Offices, have said in the letter.
“We further state that any such attempt by FHL and/or IHH to proceed with the FHH-IHH transaction would be in direct contravention of the HC and SC orders,” the letter sent by the law firm has stated. Daiichi Sankyo is pursuing the enforcement of Rs 3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to it for $4.6 billion in 2008. The apex court had in 2018 put on hold the sale of Fortis Healthcare to IHH on a contempt plea filed by the Japanese drugmaker against the Singh brothers.