Index trend and stocks in action on January 22, 2020

Nifty started off the session on a negative note but the bulls attempted to buy the initial dip from lower levels. However they could not maintain the momentum on the upside and bears came out with full force with a fresh round of selling. At the end, the index ended the day with losses of 0.45 per cent.

The price action formed a small body bear candle with an upper shadow. This pattern specifies a follow-through selling in the index with the pressure at higher levels. On Tuesday, Nifty closed below its 21-DMA. In the coming session, the zone of 12,045 to 12,120 will be an important support level, as the 61.8 per cent retracement of the last up move (11,929-12,430) is placed at 12,120 levels, 50-DMA is placed around 12,100, and the gap area of January 9 (12,132-12,045) is placed in this region. On the higher side, the level of 12,230-12,250 is likely to act as a resistance area.

Overall, we expect the buying interest to emerge around the 12,045-12,120 levels as it is a crucial support level for the index in the near term.

Biocon: Biocon said that it has received the subscription money, aggregating to Rs 536.25 crore, from True North Fund. The board of Biocon Biologics has approved the allotment of 50.25 lakh shares at Rs 1,067.07/sh to True North Fund.

Glenmark Pharmaceuticals: Glenmark Pharma will sell its Gynaecology business in India and Nepal to True North Fund's unit, Integrace, for a deal valued at Rs 115 crore. The company expects to complete the sale on or before March 31.

Bharti Airtel: Bharti Airtel Limited has received an approval from the Department of Telecommunications (DoT) vide its letter dated January 20, 2020, for increasing the limit of foreign investment upto 100 per cent of the paid up capital of the Company.

PEL: The company stated that, based on the preliminary information, the total application for its Rights Issue has been oversubscribed. The data pertaining to the applications is preliminary and is subject to verification, technical rejection, and clearing of payments, as applicable and finalization of the basis of allotment.

ZF Steering Gear India: Pithampur plant has started the commercial production.

Vodafone Idea: An application filed for modification of the supplemental order was mentioned before the Hon'ble Supreme Court. The Hon'ble Court has directed that the application be listed the next week.