Index trend and stocks in action on April 13, 2020
On the last trading day of the week, Nifty surged 4.15 per cent and on a weekly basis, Nifty made a halt to seven straight weeks of decline as it jumped more than 12 per cent for the week. Moreover, all the sectoral indices, ended in green for the week. Nifty Auto led the gains followed by Nifty Pharma.
Last week was a truncated week as we had three trading sessions where the market participants were caught by surprise as the index rallied over 12 per cent in those three trading sessions and also, FPIs were net buyers for all the three days during the week.
On the weekly chart, Nifty formed a sizable bull candle carrying a higher high and higher low as compared to the prior bar. There were a couple of positive takeaways from last trading sessions. Nifty closed above the neckline of a double bottom pattern and also, it closed above the 23.6 per cent retracement of the prior decline from its lifetime high.
Going ahead, the area of 9,400-9,600 is a strong barrier for the bulls. As in the zone of 9,400-9,600 there are confluences of factors which are likely to give a tough time to the bulls. Firstly, the 38.2 per cent of the fall from the top of January 20 to the low of March 20 is placed around 9,400 levels. Secondly, 50 per cent retracement of decline from the level of 11,433 to 7,511 is placed at 9,472 and last but not the least, Nifty made a bottom of 7,511 on March 20 and thereafter, it entered into a counter trend rally during which, Nifty gained 1,528 points from the lower levels and if we use the concept of price parity in the current leg of rally from the lows of 8,055, we get an upside projection of 9,583 levels.
Overall, there are chances this counter trend rally may extend towards 9,400-9,600 zone. However, we would advise the traders to exercise caution at higher levels.
Gujarat Alkalies & Chemicals: Considering the requirements of various local authority like municipal corporations, municipalities as well as other essential industries, the company has started a partial operation of Hydrogen Peroxide Plant at Vadodara Complex. For starting the plant, the company had obtained prior permission from the concerned district authority.
Transgene Biotek: The biotechnology company received a certificate of patent from Australia for the novel oral delivery platform technology that delivers various biologically active ingredients.
Camlin Fine Sciences: The chemicals company has resumed trial production at its manufacturing unit situated in Dahej, Gujarat.
Cadila Healthcare: Zydus Cadila has received a tentative approval from USFDA to market Empagliflozin tablets.
Lasa Supergenerics: The pharmaceutical company has forayed into the hormone and steroid API segment for human application after getting an approval from Food and Drug Administration authorities to manufacture Progesterone, a steroid hormone, at its WHO GMP-certified facility at Mahad Industrial Area.