Index trend and stocks in action on August 27, 2020

Nifty opened on a positive note and soon, pared its initial gains. However, in the second half of the trading session, bulls came out with all guns blazing, and Nifty managed to close above the psychological mark of 11,500 for the first time after February 27, 2020.

The price action formed a small body bullish candle with a long lower shadow. It continued forming higher high and higher lows for the fourth consecutive session. For the fourth consecutive session, the index has formed higher high and higher lows, suggesting that supports have shifted higher. The banking benchmark index, Bank Nifty is continuously outperforming Nifty index for the third consecutive trading session. It has also managed to close above its previous swing high of 23,211.35 level.

Interestingly, the 14-period RSI has given an ascending triangle pattern breakout, which is a bullish sign. The lagging indicator, MACD, stays bullish as it is trading above its zero line and signal line.

Going ahead, the bulls may attempt to carry forward the momentum, which was seen in the second half of Wednesday’s session. On the upside, Nifty may witness resistance in the zone of 11,660-11,680 level. On the downside, immediate support is placed in the zone of 11,490-11,460 as it is a confluence of upward sloping trendline support and 20-hour MA.

Jindal Stainless Ltd: The board has approved fundraising through the issuance of convertible equity warrants for an amount up to Rs 162.80 crore on a preferential basis.

Punjab & Sind Bank: With regard to the bank’s policy on determination and disclosures of material events, an NPA account, viz. Dewan Housing Finance Corporation Limited (DHFL) with outstanding dues of Rs 815.44 crore, has been declared as fraud and reported to Reserve Bank of India (RBI) as per the regulatory requirement. Further, the bank has already made a provision of Rs 203.86 crore as per the prescribed prudential norms.

Hindustan Aeronautics Ltd: The government will sell up to 15 per cent stake in the stock via offer for sale.

Affle (India) Ltd: The company has announced that it has won the contract from Singapore Government to build a ‘digital & cloud-based commuter survey platform’ for Land Transport Authority (LTA). The total value of the contract is over USD 1 million.