Index trend and stocks in action on February 04, 2020

After the Budget day sharp sell-off, Nifty opened Monday’s session on a weak note, however, selling pressure was seen absorbing around the 11,600 mark and soon, it reclaimed its 200-DMA. Further, it crossed the 11,700 mark and on the higher side, the 11,750 acted as a resistance. Finally, index settled at 11,728, up by 0.39 per cent.

The price action for the day formed a bullish candle, which reflects a minor relief rally in the index after a sharp weakness of the last three sessions. As mentioned in earlier write-up about a pullback rally, we had witnessed that on Monday. Now going forward, a million dollar question is whether or not this current pullback rally will continue? We believe that if the current pullback is extended, Nifty will cross the major hurdle of 11,800 mark and sustain above this level for a couple of days. As long as Nifty trades below 11,800, all relief rallies are likely to be sold off. The 11,800 level was a major support level and this level has been breached with a huge distribution. On the downside, the zone of 11,560-11,655 is a major support zone as 50 per cent retracement of the entire up move from 10,670 to 12,430 falls in this region along with 200-DMA.

All-in-all, the zone of 11,560-11,655 is a key support area and on the upside, the level of 11,800 is a key hurdle. Nifty is likely to trade in this range unless and until, we see any catastrophe event.

SRF: The board approved a project to debottleneck the HFC capacity at Dahej (Gujarat) at an estimated cost of Rs 65.5 crore. The board also approved a proposal to set up dedicated facilities to produce intermediates catering to the agro-chemicals segment at an aggregate cost of Rs 238 crore.

JK Cement: The company has successfully commissioned one million tonne per annum grey cement grinding capacity at Rajasthan as well as 1.5 million tonne per annum grey cement grinding capacity at Aligarh (UP), both units of JK Cement and also commenced commercial dispatches.

V-Mart Retail: The company has opened three new stores, one in Madhya Pradesh and two in Uttar Pradesh.

M&M Financial Services: M&M Financial Services is set to consider raising capital via bonds on February 6.

Thyrocare: Two centres of Nuclear Healthcare Limited, the wholly-owned subsidiary of the company, situated at Surat and Baroda, both in Gujarat, have been closed due to the unfair business practices by its franchisee.

GMR Infrastructure: GMR Hyderabad International Airport Limited (GHIAL) signs an agreement to operate Bidar airport (Karnataka).