Index trend and stocks in action January 02, 2020

The Nifty started off the New Year 2020 on a high note but failed to capitalize on the positive opening. As the index gradually gave up it gains to trade flat and, thereafter, it traded in a very narrow range. Finally, it settled the day with a modest gains of 14 points. The price action of the day formed a Small Body Bear candle with a narrow range, that is, a high low range of 57 points. It formed an inside bar on the daily timeframe chart. It has also formed an NR4 pattern, as the day’s range was of about 57 points and this range was smaller than the three previous bars.

Going ahead, the level of 12,100-12,119 is a crucial support for Nifty. The prior bar low of 12,119 is placed in this region, the rising trendline formed by joining October and December low is placed around 12,100 level, and the market mean average or the magnet of the market, 20DMA, is also placed at 12,100. Hence, the level of 12,100-12,119 is one key level to be watched in the coming days. While, on the upside, the 12,300 level is likely to act as a strong resistance for the medium term. We expect Nifty to consolidate in this range of 12,100-12,300 for the next couple of days before taking any directional move.

Prakash Industries: The company is pleased to inform that, in the recent auction of Coal Linkages conducted by Coal India Ltd, it has secured the allocation of long-term coal linkages of 1.69 lakh MT per annum for the next 5 years for its fifth Sponge Iron Kiln. The total number of long term coal linkages now stands at 17.04 lakh tonnes per annum.

Muthoot Capital Services: Muthoot Capital Services completed transaction of Rs 145.37 crore through securitization of portfolio.

JBM Auto: The merger of JBM Auto System and JBM MA Automotive with JBM Auto is effective on January 1.