Index trend and stocks in action on March 11, 2020
Despite coming off nearly 160 points from its day low, Nifty witnessed its biggest one-day fall in the terms of points as it ended the day with a severe cut of 538 points or 4.90 per cent. It has also pierced lows of August 2019 and made a fresh 52-week low. The journey of Nifty from its 52-week high to 52-week low has been done in just 35 trading sessions.
The price action formed a sizable bearish candle with a minor lower shadow. Nifty have come off nearly about 2,000 points from the peak levels marked in January 2020 in just 35 trading sessions. And in this process, it has breached all its important crucial moving average on the daily chart, however, in the last session, index took support around 200-WMA and bounced off.
Going ahead, Monday low is critical for the index to start the counter-trend. As long as this level of 10,294 hold, it may expect some bounce. If it fails to hold, the fall will continue to the next base, which is placed in the region 9,950-10,100 levels.
Most of the technical indicators entered into an oversold condition as the index witnessed a steep fall of almost 16 per cent in just 35 trading sessions. To come out of the oversold condition, we might see a pullback rally or a breather rally, which may retrace up to 23.6 to 38.2 per cent of the down leg.
Overall, Monday low holds a key significance and failing to hold this support level would lead to further round of selling and support seen around 9950-10,100 levels.
ABB: The board approved the sale of solar inverter business for Rs 100.6 crore on slump sale basis to FIMER's India subsidiary.
Granules: The buyback committee has approved March 20, 2020 as the record date for the purpose of determining the entitlement of the equity shareholders, who shall be eligible to participate in the said buyback.
Goa Carbon: Total petcoke production in February at 2,378 MT.
HBL Power Systems: HBL Power Systems received an order worth Rs 155 crore technology solutions to railways and Indian Navy. The company also received export orders of $3.6 million dollars for the supply of lithium thermal batteries to be completed over the next 18 months.
Shriram Transport Finance: Enforcement Directorate (ED) imposed a penalty of Rs 5 crore for contraventions in Forex markets and penalty of Rs 1.5 crore on three persons, the then directors of Shriram Holdings (Madras).
Infosys: Infosys said that it has completed the process of dissolution of its minority stake in Waterline Data.
Wonderla Holidays: In view of the emerging situation in the state of Kerala, consequent to the reported Coronavirus cases, the company has decided to temporarily close Kochi Park from March 11 to March 20, 2020.