Mamaearth Soars 14%, KEC International Gains 9%, Zydus Lifesciences Falls 6% on Acquisition News

Written by - Fisdom Research

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August 26, 2024 3 minutes

Indian markets overview:

Benchmark indices Nifty and Sensex closed on a strong note on August 26, led by gains in metal and IT stocks.
Positive market sentiment was driven by the US Federal Reserve’s suggestion of potential policy adjustments and a possible interest rate cut as early as next month.
The broader market continued its upward trajectory, with mid-cap indices rising by 0.6% and small-cap indices increasing by 0.2%.
Despite underperforming the benchmark indices today, mid- and small-cap indices have outperformed Nifty’s year-to-date gain of 14%.

Nifty50 opened gap-up and traded near 25,000 for most of the day.
The index is in a higher high, higher low formation, breaking out of a broadening triangle pattern.
Nifty50 is above its 9 & 21 EMA, with RSI (14) rising from 40 to over 60, signaling bullish momentum.
The MACD remains above the polarity, indicating a potential reversal and momentum shift.
Short-term outlook is positive with support at 24,800-24,700 and resistance at 25,200-25,300.

Bank Nifty is trading in a triangle pattern and attempted a breakout above the upper band.
The index opened with a gap and traded near the upper band for most of the session.
Bank Nifty is above its 9 & 21 EMA, with RSI (14) bouncing from 35 to above 50, signaling a bullish crossover.
MACD suggests a momentum shift with a likely reversal.
After a one-month retreat, Bank Nifty closed above the 10, 20, and 50-day moving averages.
Short-term outlook is positive, with support at 50,800-50,600 and resistance at 51,500-51,800.

Mamaearth, The Derma Co, and BBlunt’s parent company surged 14% to an all-time high after the NCLT Chandigarh approved the amalgamation scheme involving Just4Kids Services, Fusion Cosmeceutics, and Honasa Consumer.

KEC International surged 9% after securing new orders worth Rs 1,079 crore in its transmission & distribution (T&D) and cables businesses. The orders include a 765 kV/400 kV transmission line project in India and 230/132 kV transmission line projects in Saudi Arabia and Oman.

Zydus Lifesciences shares fell by up to 6% during Monday’s trading session after the company announced the acquisition of a 50% stake in Sterling Biotech from Perfect Day for Rs 550 crore.

Interarch Building Products stock makes market debut at 44% premium over IPO price
Logistics company Shadowfax eyes Rs 3,000 crore IPO
Ecos Mobility and Hospitality to launch IPO on August 28

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