Index trend and stocks in action on April 20, 2020

On the final trading session of the week, Nifty opened the day with a gap-up but the gap-up opening started to fade away and Nifty lost a good portion of the early gains. However, in the second half of the trading session, Nifty recovered and ended the day on a buoyant note with gains of over three per cent.

For the week, Nifty gained 1.7 per cent. The broader indices, Nifty Mid-cap and Nifty Small-cap outperformed the benchmark indices by gaining 4.1 and 7.1 per cent, respectively.

The price action for the week resulted in the formation of a bull candle with a lower shadow, indicating buying demand support around 8,822 levels, which is 38.2 per cent of the very recent up leg starting from 8,055 to 9,261. Technically, the index has formed a rising wedge pattern and also, it has reached 38.2 per cent retracement of the fall from January 2020 top.

Generally, the pullback rallies recorded during the previous bear market of 2000-01 and 2008-09 were confined to 23.6 to 38.2 per cent, respectively. Hence, if we compare the current pullback, which has almost reached at 38.2 per cent; the formation of rising wedge pattern right near to 38.2 per cent are giving alarming signs to the bull. So, the range of 9,390-9,600 is crucial in the coming week on the upside. If we fail to cross this level and slip below 8,800 mark, we might head towards 8,400 mark in the short. On the other hand, if we manage to cross 9,600 mark convincingly, then gates towards 9,980-10,000 could open up.

So, the coming week is crucial to watch. Meanwhile, the traders should set their eyes on 9,390-9,600 zone on the upside and on the downside, an immediate support is seen around 9,000, followed by 8,800.  

Maithan Alloys: The company has resumed its manufacturing operations at its facilities located in the states of Andhra Pradesh & Meghalaya and will gradually scale-up its production.

Muthoot Finance: S&P Global Ratings has affirmed Muthoot Finance Limited's ‘BB/B’ corporate family rating and changed its outlook to negative from stable.

Tata Motors: Jaguar Land Rover retail sales in the fiscal year 2019-20 were 5,08,659 vehicles, which was down by 12.1 per cent as compared to the fiscal year 2018-19, primarily as a result of Coronavirus pandemic thereby, significantly impacting the sales in the fourth quarter of the fiscal year. The company’s total retail sales for the quarter ending March 31, 2020 were 1,09,869 vehicles, down by 30.9 per cent as compared to the same period last year.

GAIL: The company is in readiness to resume the construction of various hydrocarbon infrastructure projects of national importance, post lifting of Coronavirus-led lockdown. In order to kick start the crucial infrastructure projects to enable expansion of the gas-based economy, GAIL along with its subsidiary and JV companies, has chalked out catch-up plans for various locations and work fronts to ensure timely completion and avoid any slippages.

Cupid: The company has started limited production activities with minimum workforce and will ramp-up once the requisite approvals are received from the concerned authorities.

Cadila Healthcare: Zydus Cadila has received a final approval from USFDA to market Baclofen tablets, 5 mg.

TVS Motor: TVS Motor Company announced that it has bought UK’s iconic sporting motorcycle brand-Norton in an all- cash deal for a consideration of GBP 16 million.