Index trend and stocks in action on March 18, 2020
Nifty opened higher and it managed to scale to levels of 9,400 but on the higher side, the bears did not allow the bulls to stretch their arms. As a result, a sharp fall was seen in the second half of the trading session, in which, Nifty lost 489 points from the day’s high and it breached its important level of 9,000.
The price action formed a bear candle carrying lower high and lower low as compared to the previous trading session. In the coming session, opening and price action around the zone of 8,900-9,000 is critical to monitor. This is a crucial support zone for the index as it is a confluence of 61.8 per cent retracement level of rise from the low of 2016 to an all-time high of 2020 and also, a change of polarity zone. However, if we fail to hold on to this support region, we would attempt to test the panic low of March 13, which were around 8,555.
The RSI on the daily time frame is quoting at 17.57 mark and it remains in the oversold territory. Also, if we observe closely, there is formation of a bullish divergence. There is consensus amongst the traders/investors, given the deeply oversold condition of the markets, as it’s a good time to buy. However, as the famous trader and acclaimed author-Mark Minervini has quoted, “Good markets stay persistently overbought and bad markets stay persistently oversold.” Yes, a technical pullback in the deeply oversold markets cannot be ruled out but their viability is a matter of great concern.
Overall, the zone of 8,900-9,000 is a decisive level to watch out and holding about these levels are important for any pullback and any pullback is likely to be resisted at 9,500 mark.
HCL Technologies: HCL announces AppScan V1O for fast accurate, agile security testing.
M&M: The company has signed an agreement for subscribing around five per cent of the share capital of Eurl LD Azouaou, Algeria (LDA).
Reliance Naval and Engineering: The company has received a termination and evacuation notice dated March 16, 2020 from Gujarat Pipavav Port Limited [APM Terminal Pipavav (GPPL) for the termination of sub-concession agreement executed for land parcels owned by Gujarat Maritime Board and sub-leased by GPPL to the company for shipbuilding activity.
Wipro: Wipro implements core banking solution for Canara Bank sponsored Regional Rural Bank (RRB).
Vakrangee: The company has introduced vHealth by Aetna primary care services through its network of Vakrangee Kendras. vHealth is a fully-owned subsidiary of Aetna Inc, a CVS Health Company, one of the world’s leading health services providers.