Index trend and stocks in action on April 27, 2020

Nifty ended the final session of the week on a negative note as it declined by 1.71 per cent and for the week, Nifty lost 1.21 per cent. Out of the five trading sessions, Nifty ended in red in almost three sessions.

On Friday, the price action of the day formed a gravestone doji and the day’s bar managed to close below the prior bar low. This price action itself is an indication that the counter-trend consolidation is at a mature stage.

As prices continue to trade within the boundaries of the rising wedge pattern, the range is getting narrower and narrower. Our experiences suggest that most of the wedges are likely to break out of the consolidation range anywhere between 66-80 per cent of the way to the apex, though some wedges can wait until the price reaches the apex, for the actual breakout to occur.

The current pattern of the wedge stands at twenty-first bar and the apex, which is the convergence of both the trend lines (supposed to meet on May 4), is about 27 bars from the day where the pattern formation started. So, the pattern has almost reached 78 per cent of the way to the apex and also, 21 is a Fibonacci number. It would be interesting to see whether price honours the rules of pattern along with Fibonacci number, or not.

For the day, an immediate support for Nifty is placed around 9,070 and breach of this support zone would open for further correction towards 8,900. On the upside, 9,400 would continue to act as a stiff resistance for the index.
 

JK Cement: JK Cement received the government’s approval to commence operations at its manufacturing facilities in the states of Rajasthan, Madhya Pradesh, Haryana and Gujarat.

Natco Pharma: Natco Pharma announced the successful closure of inspection with an establishment inspection report (EIR) from US Food & Drug Administration (USFDA) for the pre-approval inspection conducted at its drug formulations facility in Kothur village (Telangana).

Tata Steel: Tata Steel board approved the issue of additional debt securities up to Rs 5,000 crore in the form of NCDs.

Torrent Pharma: The company has issued NCDs for an amount of Rs 195 crore.

Granules: US Food & Drug Administration (USFDA) has approved an abbreviated new drug application (ANDA) filed by Granules Pharmaceuticals, Inc (GPI), a wholly-owned foreign subsidiary of Granules India Limited for Vigabatrin for oral solution USP, 500 mg.