Index trend and stocks in action on February 20, 2020

Nifty witnessed a gap-up start on Wednesday but it shaved off some of the early gains in the first couple of hours of the session. However, the bull’s regained strength as the day progressed and ended the day near day’s high. At close, Nifty rose 133 points or 1.11 per cent.

The price action formed a small bullish body candle with a long lower shadow. Technically, Nifty has retraced 61.8 per cent retracement of the previous fall from 12,246 to 11,908. But, it has halted its up-move just below the 50-DMA level, which currently stands at 12,140. In the coming session which also happens to be the last trading session of the week, the markets will be closed on the eve of ‘Mahashivratri’ on Friday, the opening and price action thereafter, would give us hint for the further course of action.  If Nifty fails to cross the 50-DMA convincingly, do not be surprised if bears come back to haunt at D-Street. However, a sustainable move above 50-DMA is likely to open up room for further upside towards 12,240 in the short-term.

All-in-all, the price action around 50-DMA is crucial for the index. We would advise the traders to book profits if bulls are unable to pierce above 50-DMA.

NIIT: NIIT to merge its two wholly-owned arms-NIIT Institute of Process Excellence (NIPE) and NIIT Yuva Jyoti (NYJL). The company has approved the proposal of voluntary liquidation of both the aforementioned arms.

GAIL: The company clarified that it has received provisional assessment order towards AGR dues worth Rs 1.83 lakh crore. The company is of the view that the amount assessed in provisional assessment orders is legally not tenable. The company has filed an application with Supreme Court on January 23 for seeking a clarification of the judgment passed.

Sterlite Technologies: The company has added new orders of Rs 1,500 crore as it sets off 2020 to a great start. These orders have ranged from continued business development in its core areas of optical connectivity solutions and network services to emerging areas such as software virtualisation.

Infibeam Avenues: The company expands its digital payments business to USA.