Diwali 2023: Investors Watch Corporate Actions of Welcure Drugs and Concord Control Systems

As Diwali approaches, investors are keenly observing corporate actions that might boost equities. Welcure Drugs & Pharmaceuticals and Concord Control Systems are two stocks to watch as they are set to trade ex-bonus this week. These actions coincide with the festive season, sparking interest in potential wealth creation opportunities in the market.

Concord Control Systems has announced a 3:5 bonus share issue. This means shareholders will receive three additional shares for every five they own. The record date for this is set for 16th October, which is also when the stock will trade ex-bonus. Similarly, Welcure Drugs & Pharmaceuticals plans a 1:10 bonus issue and a stock split in the same ratio, with the same record date.

Riyank Arora, a technical analyst at Mehta Equities Ltd., commented on Concord's performance: "Concord continues to trade in a rising structure after strong gains. The stock is above its key moving averages, indicating bullish bias. Momentum appears intact. A sustained move above ₹2,850-2,900 may open higher targets. Key support lies around ₹2,600-2,650."

The question for investors is whether this is the right time to buy these stocks to benefit from the corporate rewards and align with the festive spirit. With Concord's bonus issue and Welcure's dual actions, there is potential for significant market movement.

Riyank Arora also provided insights on Welcure Drugs: "Welcure is volatile and extended after recent run-ups. A daily close above resistance near ₹7.96 could validate a push toward higher levels (₹10+). But given prior weakness, the risk of pullback remains high. Watch support near ₹6.50-₹7.00 and manage position sizes carefully."

The strategic timing of these corporate actions with Diwali could influence investor decisions. However, potential buyers should consider market conditions and individual stock performance before making investment choices.

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