Index trend and stocks in action on April 22, 2020

On Tuesday, Nifty opened the session with a significant gap down and the selling pressure exacerbated as the day progressed. Nifty registered a low of 8,909 but recovery in the later part of the session helped Nifty to recoup some of the losses. However still, it ended with a staggering loss of three per cent.

The price action of the day formed a small body candle with a long lower shadow, resembling a hammer pattern. The high-low range of the day was 135 points, which is the smallest daily range as compared to the last seven trading sessions thereby, leading to the formation of NR7 bar.

The index has corrected about 38.2 per cent of the recent rise from the level of 8,056 level. Going ahead, the support for the index is placed around 8,820 and also, the lower end of the rising wedge is placed around 8,800-8,820 and break of this would lead to further correction. Next support is seen around 8,650 level.

Overall, the level of 8,800-8,820 is a key support area for Nifty and as long as this support is not breached, bounce back can be expected in the index.

Cupid Ltd: Due to the nationwide lockdown amid rapid spread of COVID-19, the company is finding difficulties to continue its production activities at its facility and therefore, it has been temporarily shut down, with effect from April 21, 2020.  

HDFC: HDFC reduces its retail prime lending rate (RPLR) on housing loans, on which, its adjustable rate home loans (ARHL) are benchmarked by 15 basis points, with effect from April 22, 2020.

Jyothy Labs: The company has launched hand sanitiser under the brand name ‘Margo’.

Reliance Industries: Facebook to invest Rs 43,574 crore in Reliance Industries’ subsidiary for digital services-Jio Platforms Ltd, for 9.99 per cent stake.