Index trend and stocks in action on March 20, 2020
On Thursday, Nifty witnessed a high volatility session, after opening the session with a downside gap and marking a new low of 7,832. Nifty recovered sharply but it failed to sustain at higher levels and slipped in negative terrain while, ending the day with a net loss of 205 points.
On the daily chart, Nifty formed a high wave like candle at the lows. Interestingly, the present correction already has more than 78.6 per cent of 2016 to 2020 bull market. This four bull market returns were eroded in just two and a half months. At the same time, it also breached 100 monthly moving averages.
On Thursday, Nifty took a support at December 2016 swing low and tried to close in a positive territory but the effort of pullbacks did not sustain. The effort of pullbacks of March 13 & 19 also did not produce a meaningful bounce since these bounces failed to close above the prior bar highs. As long as Nifty is unable to move above the prior bar high, avoid long positions. If Thursday’s low is protected and if a daily bar closes above the prior bar high then, Nifty can move towards 8,500 and 9,000. Also, the general rule is that, the market cannot have 90 degree fall or rise for a longer period. It has to enter into a counter trend consolidation for a brief period at least.
Overall, Thursday’s session low of 7,832 is a key level to watch out as a support. And, the readers should refrain from aggressive buying unless Nifty moves above the prior bar high.
SBI: The central board of the bank is scheduled to be held on March 27, 2020 to consider inter alia the extension of an approval accorded by the central board for raising equity capital from market up to Rs 20,000 crore till March 31, 2021 subject to the approval of shareholders, RBI and Gol.
Godrej Properties: Mumbai-based developer has expanded its residential portfolio in NCR market with a plotted development in Faridabad.
Hero Motocorp: Hero MotoCorp has commenced the commercial production at its new greenfield manufacturing facility, situated at Chittoor in the southern Indian state of Andhra Pradesh.
ICICI Lomard General Insurance: ICICI Lombard, India’s leading private sector non-life insurance company has rolled out a focussed ‘COVID-19 protection cover’.
V-Mart Retail: V-Mart Retail Limited has informed the Exchange regarding the opening of three new stores, two in Uttar Pradesh while, one in Rajasthan.
HCL Technologies: HCL releases Unica V12.O: Announcing the new, cloud native Unica platform — precision marketing at scale.
RITES: The company informed the Exchange regarding the foreclosure of JV agreement with BNV Gujarat.