Index trend and stocks in action on January 24, 2020

Nifty snapped its four day’s losing streak and ended the session with gains of 0.61 per cent at 12,180 levels. The price action of the day formed a bullish candle and it traded within the high to low range of the prior bar, resulting in a formation of an inside bar.

For the last two days, Nifty is holding the 50-DMA, which acts as a critical support, for now. Also, it is holding above the rising trendline support drawn from September’s low. Going forward, the high-low of Wednesday’s session is very much crucial. As long as the index trades below Wednesday's high, it may continue the trend towards the downside. As we discussed earlier, the initial target of 12,118 had been met. Before taking a decisive path, it may consolidate for one or two days. Thursday's positiveness did not bring any cheers in the indicator set-up. RSI bounced from the historical support of 45 zones. The MACD histogram increased even though the price moved up, it means that the momentum on the downside is picking up. The only positive observation on the chart is that the Nifty still did not make any lower lows. In any case, if it falls below Wednesday’s low of 12,087 levels, there is a higher probability of reaching the recent swing lows of 11,929. A close above 12,225 is likely to take index towards the levels of 12,370. The weekly close is important now. On a monthly chart, it is forming a long-legged doji pattern, indicating the tiredness of the bulls.

All-in-all, the level of 12,087 is crucial on the downside and a close above 12,225 is likely to take index towards the levels of 12,370.

GAIL: GAIL filed an application with Supreme Court seeking a clarification on the provisional assessment orders that the company has received from DoT.

Olectra Greentech: The company’s arm EVEY received letters of award for the deployment of 555 electric buses from 8 cities/state transport authorities under FAME-I1 scheme of Government of India. The contract period is for 10-12 years.

KEI Industries: Approved QIP floor price at Rs 518.14/share.

HFCL: HFCL said that its greenfield optical fibre manufacturing facility at Hyderabad has been commissioned and commenced its operations with effect from January 23.

Info Edge: Info Edge has set up an AIF to invest in technology and tech-enabled entities that provide a technology to create market and distribute innovative products and services benefitting consumers at large. The company will invest Rs 100 crore in the fund.