Index trend and stocks in action on April 15, 2020

On Monday, Nifty opened the session on a flat note and it faced resistance at higher levels and started to slop lower. It traded within the high-low range of its prior bar and ended the day below its psychological 9,000 mark.

The price action formed a small body bear candle carrying a lower shadow which traded within the range of its prior bar. This type of formation is generally called as an inside bar as the price traded within its high-low range of prior bar and also, if we analyse the price action of the past two sessions, it has traded within the range of April 8. We had a formation of NR7 bar as well, on Monday. So, it means that the price is compressed and volatility may spike any time.

Going ahead, the level of 8,900 holds the key and at higher side, the level of 9,132 is likely to act as an immediate hurdle. Holding above this level, could lead to the further round of upmove towards the level of 9,350-9,400 in the near term.

Overall, our advice to the traders would be to stay in buy mode if Nifty manages to sustain above 9,132 level.

Motherson Sumi: The company mentioned that their March 31, 2020 net debt levels has been the lowest in eleven quarters. Liquidity is very strong as of March 31, 2020. To further enhance liquidity in these uncertain times, its board of directors has accorded in-principle approval to raise up to Rs 10 billion and delegated its committee of directors to evaluate and decide on various borrowing proposals.

Dr Reddy’s Laboratories: Dr Reddy's Laboratories announces the launch of an authorised generic version of NitroDur® (nitroglycerin) Transdermal Infusion System in US market.

Biocon: Biocon & Mylan launched Fulphila, Biosimilar Pegfilgrastim, in Australia.

Hindalco Industries: Hindalco-Novelis completes the acquisition of Aleris.

Maruti Suzuki: Maruti Suzuki has been informed by Suzuki Motor Gujarat Pvt Ltd (SMG) that pursuant to the latest Government directive on COVID-19 situation, they will be extending the suspension of production of cars till further notice.

Hero Motocorp: The company’s manufacturing facilities in India will continue to remain suspended till further notice.