Index trend and stocks in action on April 07, 2020

On Friday, Nifty opened the session on a positive note but the opening level of the day was the highest as bulls failed to extend their move and soon, slipped into a negative terrain. At the end of the day, Nifty closed near the day’s low with a net loss of 170 points.

The price action formed a bear candle carrying a lower high and a lower low as compared to the previous session. The weekly price action formed an inside bar. Nifty has currently retraced almost 61.80 per cent of the previous, from 7,511 to 9,038 over the past four sessions.

The interesting point here is, even though the market is drifting down, the daily range is coming down from 800-500 points (at the beginning of the fall) to 250-350 points (now). This is reflected in the contraction of range. As a result, Friday’s price action of Nifty took form of NR7 candle i.e. narrowest high/low trading range in comparison to its prior six sessions range. Appearance of such a pattern at current scenario indicates a decrease in the price volatility. With NR7 candle formation on the daily chart and inside bar on the weekly chart, we might see an expansion in volatility in the coming trading sessions.

Going ahead, the low of Friday’s trading session (8,055) is going to act as a crucial support level. On the upside, the high of Friday’s trading session (8,356) is likely to act as a stiff resistance for the index.

Overall, the high and low of Friday’s session is crucial for the further direction of index. A close above 8,356 level could lead to further rally towards 8,500-8,550 while, the slip below 8,055 level could trigger a fresh round of selling.

Bajaj Finance: The company over a call, stated that over the past 10 days, it has lost nearly 350,000 customers, impacting its assets under management (AUM) by Rs 4,750 crore.

Godrej Properties: Q4FY20 bookings stood at Rs 2,380 crore representing QoQ growth of 100 per cent and YoY growth of 10 per cent. The company sold over 3,000 homes in the fourth quarter. The number of homes sold and the value of homes sold were highest that the company has achieved in any quarter.

IndusInd Bank: IndusInd Bank in its Q4 operational update has reported 13 per cent growth in net advances and four per cent growth in deposits, as compared to last year.

Kotak Mahindra Bank: The bank has reported a growth of 6.7 per cent YoY in advance, in Q4.

Lupin: Lupin launches Mycophenolic acid delayed-release tablets USP.

HDFC Bank: The bank’s advances grew around 21 per cent YoY while, the bank’s deposit recorded a growth of 24 per cent YoY.

L&T: Its board to meet on April 9 to seek an approval for raising funds including issue of debt securities.