Index trend and stocks in action on February 06, 2020

Nifty continued to gain for the third consecutive session on Wednesday. At the end of the day, Nifty ended up by 0.91 per cent at 12,098 levels.

The price action of the day formed a sizable bull candle, carrying a higher high and higher low. Nifty has retraced almost 61.8 per cent of the downmove, which started from the all-time high levels. The Golden Ratio (61.8 per cent retracement) level and 20-DMA are placed in the zone of 12,119-12,133. The opening of the index and price trajectory around these levels would be important to watch out as any price rejection around these levels would result in a halt of the move and bears could come back. Hence, moving above this zone is crucial for the momentum traders as it would open the door for further upside towards 12,240 levels. On the downside, an immediate support is seen around 11,920 mark.

All-in-all, a V-shaped recovery, which we have witnessed from the lower levels, is nearing a crucial mark and some consolidation at the current levels is important before the next leap. At the same, time it is important for the bulls to hold 11,920 mark. Today, the Reserve Bank of India’s monetary policy is due hence; some volatility would be there in the markets which the traders would have to deal with.

ITI: The company has withdrawn Follow-on Public Offer (FPO) due to the prevailing market conditions.

Lupin: The company receives an approval for Leflunomide tablets USP.

Sagar Cement: The company reported a jump of 4.66 per cent, YoY in its consolidated production to 3.16 lakh tonnes, while the sales were down by 1.59 per cent at 3.15 lakh tonnes, YoY.