Index trend and stocks in action on February 19, 2020

Nifty opened the session lower and it sinks like a stone as the day progressed. It recorded a low of 11,908 during the day and just when things looked miserable, the bulls came in full rush and Nifty recovered almost 100 points from the day’s low and it closed with a loss of less than half a per cent.

The price action of the day formed a small body candle with a long lower shadow. In the technical parlance, this pattern is known as a ‘hammer’ pattern. This pattern is considered as a bullish reversal candlestick pattern.  Further, the formation of this pattern has emerged near the strong support area defined by 50 per cent retracement of the current up move and also, 100-DMA. Going ahead, the bulls may attempt to carry forward the momentum which was seen in the last leg of trade in Tuesday’s session. On the upside, Nifty may witness a resistance around 12,060 levels followed by 12,100. On the downside, the 100-DMA which stands at 11,942-mark is likely to act as an immediate support level.

The recovery in the last leg of trade on Tuesday certainly has once again ignited some hopes amongst the bulls, however, we feel this could be a pullback rally and as long as we stay below 50-DMA, we would not see a runaway rise.

HCL Technologies: The company is set to launch global delivery center in Hartford (Connecticut) with Anchor Client, Stanley Black & Decker.

Jaiprakash Associates: The company received a letter from Yamuna Expressway Industrial Development Authority (YEIDA) on its decision to cancel the land allotment to JPSK Sports.

Infosys: The company has partnered with General Electric (GE) Appliances for digital solutions.