Index trend and stocks in action on April 29, 2020

Nifty opened the session with a gap-up near 9,400 mark on the back of positive global cues. However, it pared all its gains in the initial hour of the trading session and touched the level of 9,260. However, the index pulled itself from the day’s low to end the session at the top range of the day. At the closing bell, Nifty surged 1.06 per cent to close at 9,380 level.

The price action of the day formed T-letter shaped candle and in technical parlance, it’s known as Dragonfly doji candlestick pattern. This candlestick pattern is formed when the bears take control of price during the session and the price moves below the opening price but the bulls push it up and close it almost on the opening price. This candlestick pattern has a different meaning during uptrend or downtrend. At present, this candlestick pattern is formed right near to the resistance area and if this candlestick pattern is formed near a resistance area, it shows bear and bulls are having no idea where the price is going thereby, indicating an indecision or uncertainty in the market.

In the coming session, it would be interesting to see the opening of index and its price movement thereafter. If Nifty opens around 9,400 mark and fails to pierce this mark in the first half then, in that case, we might see a range bound trading or if we see a gap-up opening above the 9,400 mark and after a gap-up opening at the first dip towards 9,400 mark, it would become a perfect entry point for long trades. As per the rule of change in polarity, the level of 9,400 mark would turn into support.

Hence, keep a close watch around 9,400 mark and in the case of a gap-up opening, look to buy into dips as long as we hold above 9,400 mark.

Biocon: Biocon & Mylan launch Fulphila, a biosimilar pegfilgrastim, in Canada.

NLC India: NLC India has for the first time, commenced the production of coal on April 26, 2020. The coal produced from Talabira II and III mines in the state of Odisha, which was allotted to the company in 2016, with a capacity of 20 million tonnes per annum, will be used to meet its requirement of the existing and future coal fired power plants.

Crompton Greaves Consumer Electricals: CG Consumer Electricals partially resumes operations at its Baddi plant (Himachal Pradesh).

Reliance Industries: As on April 27, the shareholding of a wholly-owned subsidiary of the company-Reliance Strategic Business Ventures Limited (RSBVL) in SkyTran Inc. increased to 26.31 per cent on a fully-diluted basis.