Index trend and stocks in action on March 04, 2020

After a seven day slide, at last, ‘green’ was witnessed on Tuesday. The index opened with a gap-up and the volatility kept traders on their toes as index pared its opening gains, however, in the last leg of trade, Nifty rebounded and closed at 11,300 mark.

The price action formed a bull candle, which is placed within a high-low range of bear candle of Monday. Technically, this pattern in technical parlance is known as inside day. With this bull candle, Nifty managed to halt its lower low formation. In the coming session, the high and low of inside bar is likely to act as an important point of attention as sustaining above the high of inside bar i.e. 11,342, could lead the index to test open the downside gap area of February 28, which remains unfilled. While, slipping below the low of inside bar i.e. 11,152.55, could lead to the test of 11,020 level, which is at 78.6 per cent retracement level of up move seen from levels of 10,637 to all time high levels.

The daily RSI has turned up from the oversold region and the current quoting at 31.78 as well as on the upside, the crucial level to watch out for is 40. And if it fails to cross 40 mark or turns down from this level, it would signify an extreme bearish phase.

Overall, whether it’s a dead cat bounce or a temporary bottom formation in Nifty, of which the coming session would give us a fair idea. Traders are still advised to trade with a cautious approach. 

Tech Mahindra: The company’s subsidiary-Comviva Technologies Limited has agreed to sell its 100 per cent shareholding in Terra Payment Services (Netherlands) BV along with its other subsidiaries.

HAL: Hindustan Aeronautics Limited (HAL) received a notice from International Court of Arbitration of International Chamber of Commerce (ICC) on request for Arbitration from RUAG Aerospace Services GMBH. 

IRB Infrastructure: IRB Infrastructure Developers informed the exchanges that it has redeemed NCDs worth Rs 1,400 crore. The company had issued secured, redeemable, unlisted Non-Convertible Debentures (NCD) on private placement basis in December 2019. Consequently, the company does not have any outstanding borrowing by way of NCDs, the filing added.

Max Financial Services: The company will issue 7.54 crore shares to Mitsui Sumitomo at Rs 565.11 per share.

Infosys: Infosys to transform K+S’ Infrastructure to NextGen Agile and Flexible Hybrid Cloud.