Index trend and stocks in action on June 02, 2020
It was a marvellous Monday for Nifty as it jumped above 9,800 mark and ended the day with net gains of over 2.5 per cent. Nifty started off the session with a gap-up and the gains accelerated as the day progressed. However, in the end, Nifty came off about 100 points from its high but still managed to post strong gains for the day.
The price action of the day formed a bull candle with an upper shadow, which indicated profit booking at higher levels after almost 900 points rally from the low of May 27. Nifty surpassed its swing high of April 30 but registered a lower close as compared to April 30.
Nifty has filled the gap of May 4 with a gap-up opening and managed to sustain above the gap-area. Going ahead, this gap-area (9,707-9,599) is going to act as a support area. On the upside, the level of 9,940-10,000 is likely to act as a strong resistance area.
With a strong rally of almost 900 points from the lower levels of May 25, majority of the indicators have reached an overbought condition. Hence, we might see some consolidation or a phase of cool-off in the index. It’s important that the index, during this phase of consolidation or profit booking, should hold above 9,700 mark.
Tata Power: The company completes the acquisition of 51 per cent equity shares of TP Central Odisha Distribution Limited (TPCODL), licensee for distribution and retail supply of electricity covering the distribution circles of Bhubaneswar (electrical circle - I and II), Cuttack, Paradeep and Dhenkanal in the state of Odisha.
Ratnamani Metals and Tubes: The company has received new domestic order for stainless steel tubes of Rs 35 crore and an export order for stainless steel tubes of Rs 22 crore, to be completed by January 2021.
NCC: NCC has received four new orders worth Rs 1,135 crore in the month of May 2020.
IRCON International: The company has signed a memorandum of understanding (MOU) with National Investment and Infrastructure Fund Limited (NIIFL) and Ayana Renewable Power Private Limited (AYANA), a NIIF platform company to explore and collaborate opportunities in the solar energy sector.
SBI Cards and Payment Services: The company has issued 8.5 lakh new cards in Q4FY20 at a daily run rate of 10,000 cards per day till mid-March 2020. In April 2020, 27,000 new cards were issued primarily from the applications already in the pipeline at a daily run rate of less than 1,000 cards per day. In May 2020 with zone-based relaxations, sourcing of new accounts has gradually increased and new cards run rate has reached 2,500+ cards per day.