Index trend and stocks in action on January 30, 2020

The traders believed the coronavirus widespread outbreak may very well turn into a major Black Sawn event. This fear was clearly visible in the last two trading sessions, as Nifty posted losses for the second consecutive trading session on Tuesday. Leaving aside the concerns of coronavirus, Nifty opened Wednesday’s session with an upside gap and extended its morning gains. However, it came off about 40 points to finally end the day with a gain of 0.61 per cent.

The price action of the day formed a small body candle with a long upper wick. On further analysing the candle, we observe that there is a formation of narrow range 4 candle pattern, popularly known as ‘NR4’. This pattern helps to identify the quite period before the next explosive move in the markets. Hence, in today’s session, traders can expect volatility to kick as it kicks in after the formation of NR4 bar and also, it’s the expiry of the current derivative series.

As we mentioned earlier, any upside in Nifty is likely to halt at 50-DMA and on Wednesday, pullback on Nifty halted near about 50-DMA (12,130). Going ahead, if Nifty has to avoid any substantial weakness in the near term, it will need to move above the 50-DMA level and also need to retake its 20-DMA. However, failure to move past these levels, we believe the market will be a sell on the rally market. On the downside, the low of Tuesday’s session (12,024.50) is a very crucial support level for the index and sustaining below this level would open gates for further correction towards the levels of 11,929.

All-in-all, traders should brace for a volatile session on Thursday and immediate support for Nifty is placed at 12,100 mark.

HDFC Bank: RBI imposed a monetary penalty of Rs 1 crore on the bank for failure to undertake the on-going due diligence in case of 39 current accounts opened for bidding in Initial Public Offer (IPO).

Himadri Speciality Chemical: The company said that the commercial operations of the proposed expansion of 60,000 MTPA plant for manufacturing carbon black at West Bengal have commenced. With this addition, the company’s overall capacity of Carbon Black stands increased to 1, 80,000 MTPA.

MOIL: MOIL has received an Environmental Clearance for the enhancement of production capacity from 90,000 TPA to 2,03,200 TPA. The production will increase gradually.

Meghmani Organics: Meghamani Organics will restructure its business by demerging its agro-chemical and pigment business into a wholly-owned arm, Meghmani Organochem.

InterGlobe Aviation: A majority of InterGlobe Aviation's shareholders voted against a proposal to amend the articles of the company’s association.

JSW Steel: JSW Steel’s Netherlands arm has completed the sale of its 39 per cent stake in Geo Steel to its joint venture partner-Georgian Steel Group Holdings.