Index trend and stocks in action on March 26, 2020
Wednesday’s session was important from many aspects. Firstly, the bulls got yet another chance to prove their dominance as after February 12, they have not registered two consecutive positive and secondly, a key reversal pattern that was formed on Tuesday’s session, needed a follow through.
The start to the session was not what the doctor ordered for the bulls, as market had a negative opening, however, within no time; it pared its initial losses and trended higher. Thereafter, the volatility kicked in and Nifty traded with high volatility as we saw a fight between the bulls and bears. However, once the bulls crossed its prior bar high, there was no holding back, as they raced higher and recorded one of the day’s biggest rallies. Nifty ended above 8,300 mark, up by a massive 6.62 per cent.
The price action formed a sizable bullish candle carrying higher high and higher low. Further, this candle reflects a sheer dominance of the bulls as it closed at the highest point of the day and there is a negligible difference in opening and the low of the day price, which indicates that the buyers’ maintained control of the price throughout the day from the opening bell to the closing bell. Also, if we look at breadth, 38 out of 50 Nifty stocks closed in green.
Technically, we have got some respectable signs that the index is attempting to confirm a temporary bottom. But at the same time, we would say that it’s still not out of the woods as the uncertainty with respect to COVID-19 is still looming over. Further, Wednesday’s up-move has halted near the upper channel line resistance. We would advise traders to keep an eye on 8,550-8,600 levels on the upside, if the index is not able to move past the zone then, it may fall back towards 8,000-8,100 mark.
Overall, we would suggest the traders to pay attention to important levels mentioned and trade accordingly. Do not take aggressive bets as today is March series expiry and volatility will come to play its part. So, trade with strict stop-loss and proper risk management.
DeltaCorp: The board of directors of Delta Corp Limited will be held on Saturday, March 28, 2020 to consider the proposal for buyback of shares.
NTPC: Second unit of 660 mw of Khargone Super Thermal Power Project has been added to install capacity of NTPC on the successful completion of its trial operation. With this, the total installed capacity of Khargone Super Thermal Power Project, NTPC and NTPC Group has become 1,320 mw, 50,355 mw and 58,816 mw, respectively.
TVS Motor Company: The subsidiary’s plant situated at JL Surya Madya Kav 1-30, Karawang, West Java-41361 will resume operations from tomorrow viz., March 26, 2020 and any decision on the closure of plant at Karawang, West Java, Indonesia will be taken in consultation with the Governor of West Java as well as the local Government authorities.
Cummins India: The company announced the temporary suspension of offices and plants across India due to COVID-19.
REC: The board approved increasing the market borrowing program by Rs 4,000 crore to Rs 94,000 crore for the financial year 2020-21.