Index trend and stocks in action on April 01, 2020

Nifty behaved like a chameleon, the animal that has an ability to change its colour according to the change in environment. On Monday, Nifty closed with a mammoth loss of approximately 4.5 per cent but on Tuesday, Nifty changed its colour from red to green as Nifty surged 3.82 per cent or 317 points on the back of positive global cues.

During January-March 2020 quarter, Nifty 50 declined about 29 per cent. This was the sharpest quarterly fall since June 1992 quarter, where it fell 32 per cent during the quarter. For FY20, Nifty50 plunged about 26 per cent, the biggest fall in fiscal since FY09.  And for the month of March 2020, Nifty 50 was down by 24 per cent.

The high-low range of Tuesday’s session candle was about 320 points but the actual body of the candle was of 68 points. So for Tuesday’s session, Nifty formed a bull candle of a small body with a long lower shadow.

After retracing about 50 per cent of the recent up move, the index has moved above its five-EMA and closed above prior bar high. The recent low of 8,244 can be considered as a higher-low and in the coming days, if Nifty manages to hold above the recent swing low of 8,244 and closes above 9,039 level, Nifty may form a higher-high. However, the failure to close or move above the swing high of 9,039 level, it may result into a consolidation in a broad range of 8,000-9,000.

The RSI quoting is around 37-mark on the daily time scale and as per Andrew Cardwell rules, when RSI oscillate between 20-40 zone, it is in a super bearish range. As long as Nifty stays below 40-mark, we would be in a super bearish phase.

Hindustan Unilever: The company’s board of directors will meet on April 1 to consider and approve the scheme of arrangement.

GM Breweries: The company has received a license to manufacture hand sanitisers from Food & Drugs Administration (FDA), (Maharashtra State, Thane) which is valid from March 31, 2020 to June 30, 2020.

Adani Enterprises: Receipt of Letter of Awards (LoA) from National Highways Authority of India (NHAI).

GE Power India: GE Power India awarded a contract by NTPC to supply wet flue gas desulfurisation (FGD) systems for a value of US$ 97 million.

Jubilant Life Sciences: Jubilant receives an EIR with voluntary action indicated (VAI) from USFDA for its solid dosage facility at Salisbury, Maryland USA.