Index trend and stocks in action on February 24, 2020
Last week Nifty traded volatile but it remained in a capped range and ended flat with minuscule losses of 0.27 per cent.
The Nifty retraced 62 per cent of the recent fall and formed an inverted hammer. Interestingly, this bearish candle was formed after a hanging man formation. After a 244 point surge from the Tuesday low, the benchmark index looks tired. It failed to close above the prior day high and closed below the open level. The move from the low of Tuesday is because of huge short squeeze. On a weekly chart, it has formed a bear body candle with a long lower shadow which resemble to a hanging man candle after forming a long-legged doji in prior week.
The 50DMA is working as stiffer resistance for now. The Nifty was able to close above 50DMA just for one day. Even the 244 point surge in two days failed to close above 50DMA and it actually worked as resistance again. The magnet of the market 20DMA is trending down. Any close below 20DMA 12,042 will resume the downward move. This time the move can be a sharper one. We can expect this sharp and euphoric move to lead lower to the Tuesday low of 11,908. As long as Nifty trades between 12,142 -11,908 we may not get good trending trade on index. Any close above 12,142, the immediate target is placed at the prior high 12,246 and above this level it can test the maximum of 12,310. But, closing below 12,042 will lead sharp fall up to 11,908. Below this level, it will test the recent swing low of 11,614. So, trade cautious on a long side, unless the Nifty clears the 50DMA, it advised to not to venture the long positions.
Prince Pipe: CARE rating has revised its rating on bank facilities to CARE A- and CARE A2+. The revision in ratings assigned to the bank facilities of Prince Pipes factors is due to the improvement in its leverage indicators post conclusion of Initial Public Offer (IPO).
Biocon: US FDA conducted a pre-approval inspection (PAI) of company subsidiary, Biocon Sdn. Bhd’s Insulins manufacturing facility based in Malaysia, for Insulin Glargine. At the conclusion of the inspection, the agency issued a Form 483 with 3 observations which we believe are procedural in nature.
Dilip Buildcon: company has executed an EPC Agreement with the Airport Authority of India for an EPC project in the state of Gujarat.
Dr Reddy’s Laboratories: The company received EIR from the US FDA for Duvvada formulations manufacturing plant.
Alkem Laboratories: US FDA had conducted an inspection at the company’s manufacturing facility located at Baddi, India from 17th February, 2020 to 21st February, 2020. At the end of inspection, the company has received a Form 483 with two observations.
Wipro: Company announced today that it has acquired Rational lnteraction, a full-service digital customer experience (CX) company.
PVR: PVR has opened 5 screens multiplex at Nilamber Triumph Mall in Vadodara, Gujarat. This multiplex is equipped with BARCO RGB+ projection system along with Dolby 7.1 surround sound and ultra high brightness 3D technology in all auditoriums.
Aurobindo Pharma: The company received a communication that the inspection conducted by the U.S. Food and Drug Administration (USFDA) at Unit IV, from November 4, 2019 to November 13, 2019, is still open and under review, by way of rescindment of 90-day Voluntary Action Initiated (Val) letter that was issued by them on February 18, 2020.
Muthoot Finance: MUTHOOT FINANCE LTD raises USD 550 million from International Bond Markets.
GMR Infrastructure: GMR Infrastructure Limited announces Strategic Partnership with Groupe ADP for Airports Business.