Index trend and stocks in action on January 29, 2020

The first half of the trading session saw a tough battle between the bulls and the bears. However, in the second half of the session, as soon as Nifty breached its important psychological 12,100 mark, it was a tsunami of sell-off and index ended below the swing low of 12,087 with a loss of 0.48 per cent. The price action formed a sizable bear candle carrying lower high and lower low in comparison to its prior bar.

The main takeaway of Tuesday’s session is that the index breached its 50-DMA decisively and follow-up selling has been seen along with higher volumes. Moreover, Nifty added a distribution day as index fell more than 0.2 per cent, higher than the previous session. The opening upside gap of January 9 has been filled completely and Nifty closed just above that gap support.

As we discussed earlier, the failure to sustain above the 12,250-12,280 mark, the initial target on the downside would be 12,087 and this target had been met. Going ahead, the failure to hold above Tuesday’s session low of 12,024.50, there is a higher probability of reaching 11,929 levels in the coming days. On the upside, Nifty needs to crawl back above the 50-DMA and close above the level. Until that time, it will see the up moves, if any, getting halted near the 50-DMA.

RSI on the daily chart marked a fresh 14-period low, which is bearish. The daily MACD stays bearish and it trades below its signal line.

Wonderla Holidays: The company informed on the proposed Chennai project that it is in the process of getting project approvals from Tamil Nadu Single Window Guidance Bureau. The Board approved a proposal to set up an amusement park in Odisha.

Cochin Shipyard: The first of the two 1,200 pax capacity passenger vessel cum 1,000T cargo vessel under construction in Cochin Shipyard for Andaman & Nicobar administration was launched.

HFCL: HFCL will buy a 47.87 per cent stake in Bigcat Wireless for a total consideration of Rs 22.50 crore.

Ircon International: Ircon International to consider share split on February 11.

JK Lakshmi Cement: The company approves raising of external commercial borrowing (ECB) up to USD 25 million in one or more tranches subject to requisite approvals.

KEI Industries: KEI Industries approved the issue and allotment of 10,000,000 equity shares to eligible qualified institutional buyers at an issue price of Rs 500 per equity share.