Index trend and stocks in action on February 18, 2020

Nifty started off the fresh week on a flat note. However, the index witnessed a gradual correction during the day and ended it with losses of 0.56 per cent.

The price action of the day formed a bear candle carrying lower high and lower low, indicating a follow-through weakness in the market. Also, it has breached its 20-DMA. The recovery which was seen post the Budget Day, seems that it is currently undergoing a consolidation phase wherein, the index has been trading in a range of 200-250 points. On the higher side, the level of 12,250 is acting as a stiff resistance and on the downside, 12,000 is acting as a support level. Only a breakout on either side could lead to a directional move. Currently, it is approaching towards the lower end of the range. Hence, the traders will closely monitor the 12,000 mark on Nifty as a decisive move below this, would open gates for a 100-150 point’s correction.

On the daily chart, the short-term moving average i.e. 20-DMA has crossed below the 50-DMA indicating a loss of momentum. Besides, the 20-DMA is tilted down, which is not a good sign.

All-in-all, the current technical pictures clearly indicates that there has been a loss of momentum from the bulls and the 12,000 mark is a crucial support area. In case this level is breached, a 100-150 point is likely to be seen in the coming trading sessions.

Orissa Minerals Development Company: Belkundi Iron & Manganese Mine gets the nod for enhancement of iron ore production to 1.8 MTPA and Manganese Ore to 0.5 MTPA in Odisha.

Grasim Industries: The board of directors of the company approved and allotted NCDs of Rs 10 lakh each aggregating to Rs 500 crore, on private placement basis.

JSW Steel: National Company Law Appellate Tribunal (NCLAT) allowed the appeal of the company to take over Bhushan Power and Steel and dismissed other related appeals filed by the operational creditors and erstwhile promoters.  Also, the company has been declared as the ‘preferred bidder’ for three iron ore mines in Odisha.

HAL: Hindustan Aeronautics Limited (HAL) raises Rs 1,000 crore through commercial papers.

Tata Motors: The company is planning to raise Rs 500 crore through the issue of securities for which a committee of its board will meet on February 24.

JSW Energy: The company has signed a share purchase agreement with GMR Energy to acquire a 100 per cent stake in GMR Kamalanga Energy for an enterprise value of Rs 5,321 crore. The target company owns a 1,050-megawatt power plant in Odisha.