Index trend and stocks in action on February 01, 2020

Friday’s session was almost a repeat of Thursday’s session, where Nifty opened the session on a strong note only to witness the selling pressure at higher levels and closing the day near the low. Nifty closed below 12,000 mark, down by 0.61 per cent.

The price action formed a sizable bear candle carrying lower high and lower low in comparison to its prior bar. In technical parlance, this formation indicates a downtrend continuation pattern. As we mentioned earlier, Nifty is nearing to our target of 11,929 and is almost there. The level of 11,900 will be a key support to watch out and failure to hold this support on closing basis, turn the tide significantly in favour of the bears. If Nifty has to avoid any substantial weakness in the near term, it will need to move above the 50-DMA level. However, failure to move past these levels, we believe that the market will be a sell on the rally market.

All eyes today will be on the Union Budget 2020 and a high volatility is likely to be seen on this special trading session. We would advise the traders to be on a wait and watch mode during the first half of the trading session as once the Budget proposals start rolling in, the movement in the market is likely to be speculative in nature with no clear cut direction on either side. However, once, the main pointers of the budget are announced and totally digested by the markets participants, traders would have a better chance to make gains.

Power Grid Corporation of India: The board of directors has accorded an investment approval for the transmission system of providing connectivity to Renewable Energy (RE) projects at Bikaner (PG), Fatehgarh-11 & Bhadla-11, at an estimated cost of Rs 562.86 crore with progressive commissioning schedule of 12 months from the date of investment approval.

SMS Pharmaceuticals: European Directorate for the Quality of Medicines (EDQM) completes the inspection of Bachupally API Facility (Telangana) and concluded that the audit is successful.

Shilpa Medicare: Shilpa Medicare received an approval for cancer drug lenvatinib mesylate capsules in India. The company will commercialise the product under the brand name of Lenshil and will become the first Indian company in the country to bring a cheaper version of this drug to treat Indian cancer patients.

NHPC: National Hydroelectric Power Corporation (NHPC) board to consider the raising capital via debt rose to Rs 1,000 crore on February 7.

Divis Laboratories: The company's Andhra Pradesh unit received zero form 483 observations by USFDA.

Eveready Industries India: Eveready Industries said that it has completed the sale of its land at Hyderabad for Rs 100 crore to Nuland Technologies.