Index trend and stocks in action on February 11, 2020

Nifty opened the session on a flat note and in the initial part of the session; Nifty slid over 100 points to bottom out at 11,990. Thereafter, it traded sideways and trimmed some portions of losses to end the first trading session of the week with a cut of over half a per cent.

The price action of the day formed a bear candle with a small lower shadow. Nifty rose almost 546 points from the low of 11,614.50. This relentlessly rally of 546 points in a short span of time is generally followed by a consolidation. There are a very few instances, where V-shaped recovery is sustained for a longer period. Nifty has been forming lower-highs and lower-lows on the daily chart. At present, Nifty has corrected about 23.6 per cent of the up move from lows of 11,614.50. This could mean a halt or pause after a strong trending move. Going ahead, 11,890-11,900 is a key support zone for Nifty. On the higher side, if the markets move 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, will be reclaimed.

Overall, we believe that this consolidation and corrective bias is likely to continue until Nifty moves past its 50-DMA. On the downside, 11,890-11,900 is a key support area.

Cipla: Cipla SA signs an agreement for anti-psychotic drug.

Info Edge: The company has entered into an agreement to invest about Rs 37.10 crore via a mix of primary and secondary purchase of shares in Sunrise Mentors Private Limited.

Camlin Fine Sciences: The company’s manufacturing facility in Zhejiang (China) is awaiting clearance from the Chinese Government to start its manufacturing. The delay has been caused due to the government’s direction to not open facilities in the province due to the outbreak of coronavirus.

Capacite Infraprojects: The company has received a contract worth Rs 350.17 crore from Marquee private sector client in Mumbai under its commercial and institutional portfolio.

Avenue Supermarts: Qualified Institutional Placement (QIP) issue closed on February 10. The board approved the issue price at Rs 2,049 per share.

DCM Shriram: Intimation of commissioning of new 66 MW power plants at Kota.