Index trend and stocks in action on April 16, 2020

It was being expected that after a phase of volatility contraction, there will be volatility expansion and on Wednesday, we saw a phase of volatility expansion. Along with this, the daily range for Nifty was about 387 points, as compared to the previous day’s range of 199 points.

In the first half of the trading session, Nifty did swing higher but on higher levels, there was a sense of discomfort and intense selling pressure seen in the second half of the trading session. Not only Nifty gave away the entire portion of gains but also ended in red with a net loss of 0.76 per cent.

The price action for the day formed a bearish engulfing candlestick pattern. Nifty moved above the level of 9,132 but failed to sustain because of the selling pressure in the second half of the trading session. The bearish engulfing with higher volume near to the resistance and a probable swing high is not a good sign for the near-term. While, on the downside, Nifty breached its support level of 8,904 on intraday basis but managed to defend on the closing basis.

Even after over 20 per cent rally from the bottom, the 20-DMA is still moving down. Overall, the range of 8,650-9,390 is a crucial range to keep a watch out and break on the either side of the range, which would lead to a directional move.

Shree Cement: Shree Cement is looking for necessary approvals from the government to resume its production at various locations.

Endurance Technologies: Endurance Overseas Srl, Italy (EOSrl), a subsidiary of the company and special purpose vehicle for strategic overseas investments, has acquired controlling equity stake of 99 per cent, in Adler SpA.

Escorts: The company informed that until further notice, all the offices and plants across the company shall remain shut till May 3, 2020 or any other date as may be announced by the government.

Galaxy Surfactants: The operations at Tarapur location are closed and will be resumed after receiving necessary permissions from the statutory authorities to restart.

Navin Fluorine International: Navin Fluorine operations at two plants, in Gujarat and Maharashtra, resumed from April 14.

Prataap Snacks: The production at the company’s third party/job work manufacturing units located at Kashipur (Uttarakhand), Raigad & Karjat (Maharashtra) and Hisar (Haryana) have been started in-line with the terms and conditions of the order(s) of the respective local administration amid the spread of Coronavirus (COVID-19).