Index trend and stocks in action on March 02, 2020

It was a massacre on D-Street last week as the global sentiments pushed domestic market downhill and Nifty recorded one of the most severe weekly fall since the global financial crisis as more and more Coronavirus cases is being reported outside China on daily basis.

On the weekly time scale, a historical long bear candle was formed, the size of the bear candle highlights the amount of selling pressure that the markets witnessed throughout the week. Nifty has plunged almost 10 per cent from the high of 12,430.50 and the current down move seems to be a sharper one as compared to the previous down moves from higher top.

Going ahead, the region of 11,020-11,090 is likely to act as a support for the index as its 78.6 per cent retracement level of the rise is similar to what was seen in August 2019. On the upside, Friday’s gap area is likely to act as a stiff resistance. It’s important for the traders to understand that after last week’s brutal fall, the index has plunged below its important moving averages. Nifty trades below its 200-DMA by 4.15 per cent, 100-DMA by 6.42 per cent and 20-DMA by 6.13 per cent, which clearly indicates that the structure is in favour of bears and we would advise traders not to rush and buy but wait for a good base formation before putting your chips in the market.

Reliance Industries: The company has acquired 37.7 per cent stake in textile manufacturer-Alok Industries, at a total consideration of Rs 250 crore.

NTPC: 800 MW Unit#1 of Darlipali Super Thermal Power Station Stage-I (2 x 800 MW) is declared for commercial operation.

Career Point: The Schoolnet India Ltd and Eduplanet Knowledge Solutions Pvt Ltd (Erstwhile Career Point Publication Pvt Ltd) has been called off because certain clauses were not in the interest of the company.

Bharti Airtel: The company has paid an additional amount of Rs 3,004 crore towards the full and final amounts due over & above the ad-hoc amount of Rs, 10,000 crore paid on February 17, 2020 on the behalf of Bharti Group of Companies. The company also deposited an additional amount of Rs 5,000 crore, as an ad-hoc payment.

Dr Reddy’s Laboratories: The company has issued revised intimation with regard to receipt of form 482 with two observations after inspection of Formulations Manufacturing Plant- three at Hyderbad by USFDA. USFDA Investigator has subsequently issued a revised Form 483 with one observation only, in place of two observations intimated earlier.

Affle India: The company announced the signing of a definitive agreement to acquire Spain headquartered Mediasmart, a self-serve mobile programmatic and proximity marketing platform.

Coal India: February production was up by 14.2 per cent (YoY) to 66.26 million tonnes. February sales were up by 6.8 per cent (YoY) to 54.97 million tonnes.