Index trend and stocks in action on February 10, 2020

Last week was a splendid one for the bulls as out of five trading sessions, Nifty closed in green in four trading sessions. The benchmark index Nifty ended the week with a net gain of 3.74 per cent.

On Friday, Nifty formed a bear candle with almost identical high-low as compared to prior bar, but closed lower.  So the single day candlestick formation is giving us a hint that the bears are trying to regain their lost power. However, the weekly candle is a sizable bullish candle. The Nifty has surged almost 66 per cent of prior down swing. The 66 per cent recovery of 11-day downswing happened in just four trading sessions. The Nifty closed above the 50-DMA and stayed there just for one day.

In the coming days, the level of 12,000 is an important support for the index. Failure to hold above the 12,000 mark could be the first sign of weakness. In that case, Nifty could fall up to 11,920. On the higher side, if the markets moves above Thursday’s high of 12,161 and sustain there, then the bulls have an upper hand and in that case the level of 12,272 which is the prior swing high we be reclaimed.

All-in-all, Nifty has already shown a few signals of exhaustion at current levels. There is a high probability that the consolidation that has begun may stretch to the coming week as well and during this consolidation phase, it’s important that Nifty should hold above 12,000 mark.

Dr Reddy’s Laboratories: Curis, Inc. entered into an amendment of its collaboration, license and option agreement with Aurigene Discovery Technologies.

Ultratech Cement: Company is considering a proposal to raise funds by issuance of NCD aggreagating to Rs 250 crore on private placement basis.

UPL: The Board of Directors of the Company at its meeting held on 7th February, 2020, has decided to terminate the GDR program (consisting of 2,83,680 GDRs representing equal number of equity shares - 0.04 per cent of the paid-up share capital of the Company).

OM Metal Infraprojects: Om Metals in consortium bags Rs.263.1 order from government of Madhya Pradesh.

Cipla: Cipla Expands Women’s Health Portfolio through Acquisition of 4 Key Brands from Wanbury.

Maruti Suzuki India: Suzuki Jimny showcased at Auto Expo 2020.