Index trend and stocks in action on March 31, 2020

Nifty opened the session with a huge gap-down but soon it recovered.  However, the recovery did not last long and the severe selling pressure in the second half of the session, resulted closing near the low’s of the day. With this, Nifty ended its four-day winning streak and in Monday’s fall, 76 per cent of Nifty50 stocks had declined.

The price action of the day formed a small body bearish candle with a long upper shadow. On Monday, Nifty had slipped below five-EMA and also, it retraced about 50 per cent of the current upmove from the lower level of 7,511. Going ahead, the level of 8,100-8,000 is a crucial support level for Nifty as 61.8 per cent of the recent pullback rally from the lower levels is placed around this region. Failing to hold this support level could lead to fresh round of selling with renewed energy and in that case, Nifty may touch the levels of 7,511 in the short-term. But, in case if Nifty manages to hold above 8,000 mark, it is likely to bring some consolidation.

Despite 1,500 points rally from the lower levels, the leading indicator RSI on the daily time frame, failed to cross 40-mark. In fact, it has turned down from 36-mark.

Overall, the picture looks gleam and in the short-term, 8,000-8,100 is a very crucial level to watch out for the bulls.

Heidelberg: Debottlenecking projects at Imlai (Madhya Pradesh) and Jhansi (Uttar Pradesh) plants have been duly completed within the scheduled timelines and the grinding capacity of these plants stand enhanced to 2.50 million tonnes per annum (MTPA) and 3.25 MTPA, respectively. The aggregate cement grinding capacity of the company stands enhanced to 6.26 MTPA.

Britannia: Despite the products being essential, the operations at Britannia have been disrupted due to the lockdown. The company said that it is taking all the necessary steps to restore operation of factories. The impact on the business operations of the company due to the disruptions is difficult to assess at this point of time.

Reliance Industries: The company is set to consider fund raising via NCDs on April 2.

Bharti Airtel: Airtel has extended the pre-paid pack validity for over 80 million customers till April 17, 2020. All these customers will continue to get incoming calls on their Airtel mobile numbers even after the validity of their plan is exhausted.