Index trend and stocks in action on April 09, 2020

Nifty opened lower after the initial hiccup however, the index gather paced and resumed its upward trajectory. At one point of time, Nifty crossed its important psychological 9,000 mark and registered a swing high of 9,132. But in the second half of the trading session, Nifty came off over 400 points from the highest point of the day and slipped into a negative territory. Finally, index closed at 8,749 down by 0.49 per cent.

The price action formed a long upper shadow and a small real body, which closed near the bottom end of the trading range and in Japanese, candlestick parlance, is called as a shooting star pattern. The shooting star’s long upper shadow reflects the market rejection of higher prices. Further, it did manage to cross 20-SMA on intraday basis but it failed to sustain on closing basis. Also, on Wednesday, Nifty closed below its prior bar close.

The above evidences clearly indicate that the zone of 9,000-9,150 is stiff resistance for the bulls and hence, only sustaining & closing above this zone, would result in the further advancement. If it does, it may scale up to levels of 9,400-mark. Meanwhile, on the downside, the level of 8,500 is a crucial support for the index.

Overall, we recommend clearly watching the behaviour of Nifty against the zone of 9,000-9,150 in case of any upside.

Manali Petrochemicals: The company informed the exchange that it has resumed production of Propylene Oxide, feedstock for Propylene Glycol, which is a pharmaceutical input at their plant 1.

Kolte-Patil Developers: Kolte-Patil Developers undertakes strategic land monetisation of a portion of sector R10 of Life Republic for Rs 91 crore.

Marico: India business posted low single-digit volume decline in the quarter. Overall, secondary growth in the quarter was lower i.e. in single digits.

Titan: Quarter commenced well with the growth largely in-line with the company targets till the beginning of March but COVID impacted sales in March. Jewellery business saw five per cent decline. Watches division grew one per cent despite creating an impact in March. Eyewear saw 20 per cent decline. Other businesses saw a growth of 42 per cent on a lower base.