Index trend and stocks in action on March 05, 2020

Wednesday’s session turned out to be highly volatile as index saw wild swings throughout the day to finally end the session on a negative note.  The price action of the day formed a bear candle with a long lower shadow, indicating a sharp recovery from the important support level of 11,080-11,100.

The key takeaway from Wednesday’s session is that Nifty made a smart rebound of almost 170 points from the day’s low and this indicates that it has been forming a base in the region of 11,020-11,080 from the low of March 2 of 11,036, despite a sharp reaction after the report of rise in the number of Coronavirus cases in India. Nifty managed to hold above that low and buying emerge. So in short, we are seeing signs of participants from buyers at lower levels.

Now going ahead, the first task for the bull is to sustain above 11,430-mark, to revive a confidence among the buyers, until then, any pullback will continue to be utilised to create short positions or lighten long positions. While on the downside, the level of 11,020 is an important support level for Nifty and any slip below these levels will see Nifty getting incrementally weaker.

Overall, there are initial signs of base building at the lower level in the index, however, it’s still early days to call out a bottom as Nifty is still not out of the woods. Any pullback is vulnerable to selloffs at higher levels, as the level of 11,400-11,430, is a key resistance area.

Maruti Suzuki India: Maruti Suzuki partners with HDB Financial Services to facilitate easy car loans for customers.

M&M: The operations of the company in March, 2020 have been further impacted due to the supply disruptions of certain critical components for the production of BS-VI vehicles on account of-outbreak of Coronavirus in China and occurrence of fire at a plant of a major supplier of the company at Chakan (Maharashtra) which is estimated to result into a reduction in production/sales volume of the company (automotive division) as well as of Mahindra Vehicle Manufacturer Limited (MVML), a wholly-owned subsidiary of the company, by around 12,000 number of vehicles in the month of March, 2020.

Reliance Industries: Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries has acquired 7,86,191 equity shares representing 100 per cent of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of Rs 152.5 crore.

DLF: The board to consider raising capital up to Rs 1,000 crore via NCDs on March 7.