Index trend and stocks in action on May 04, 2020

Nifty ended the week on an upbeat note, making a weekly gain of 7.7 per cent. On the weekly chart, Nifty registered a strong bull candle, carrying higher high and higher low. On the daily time frame, Nifty formed a bullish candle with a gap-up opening.

Nifty was trading in the range for almost 12 trading sessions. On April 29, Nifty broke out of this range and rallied almost 500 points thereafter.  However, we feel the current upmove might stall around the level of 9,970-10,000. Wondering why are we saying so? Because firstly, the 50 per cent retracement of the entire fall from its all-time high is placed at 9,970, Secondly, during the 12-day range trading, Nifty traded in almost 600 points range and if we add 600 points to the breakout level of 9,400, we get 10,000 as the target and thirdly, 10,000 is a big round number hence, it would act as a psychological barrier for the index to cross.

In the coming week, Nifty has strong support around the levels of 9,300-9,400 and on the upside, 9970-10,000 is a strong resistance.

Coal India: Coal production of the company in April, was down by 10.9 per cent to 40.38 million tonnes.

Tata Motors: The company sold and transferred GDC business on a slump sale basis for Rs 10.3 crore to subsidiary TML Business Services.

Kalpataru Power Transmission: The company said that it had terminated the deal with CLP India to sell its transmission project-ALP for not fulfilling certain conditions.

Laurus Labs: The board approved share split of one share into five shares and approved merger of two foreign arms with itself.

MOIL: The prices of all grades of Ferro, SMGR grades (Mn 30 per cent & Mn 25 per cent), fines and chemical grades have been increased, with effect from May 1, 2020 by 45 per cent on the prices prevailing since April 1, 2020.