Index trend and stocks in action on May 08, 2020

The markets traded in a narrow range on the weekly derivatives expiry day. After opening almost flat, it drifted lower and traded in a negative terrain for the majority part of the day. The entire day was spent by the index, moving in a defined 100-point range, which is quite rare on a weekly derivatives expiry day. Towards the end, Nifty closed with a net loss of 71.85 i.e. below the psychological level of 9,200. It actually, wiped out Wednesday's gain.

The price action of the day formed another indecisive bar with a small body candle as well as an inside bar. Despite closing in a negative territory, Nifty was able to protect 20-DMA for the second day. As we have mentioned, 20-DMA is a vital support for now. Going ahead, unless we move above Wednesdays’ high or low, we are not likely to get a clear trading opportunity. The zone of 9,189-9,100 is critical on the downside and the level of 9,277 is likely to act resistance on the upside. If it closes above or below these levels, we might get a clear idea about the near future.

There is no change in the indicator setup. All the indicators are showing a lag in the momentum.

For Friday, the immediate level resistance placed at 9,227 will act as a point of control. Only above this level, Nifty may test the levels of 9,290 and 9,365. In any case, if Nifty sustains below 9,189, it can test 9,142 and 9,014 levels. Between 9,227-9,189, avoid taking any position.

Neuland Laboratories: The company has received an establishment inspection report (EIR) from USFDA for its manufacturing facility located at Pashamylaram, Hyderabad. The facility was inspected from February 3 to 7, 2020. The inspection has now been closed by USFDA.

Vakrangee: Vakrangee ranked world’s no. 1 company in the software & services industry based on Sustainalytics ESG assessment.

BOSCH: The company’s plants situated at Bengaluru, Naganathapura and Bidadi in the state of Karnataka, Nashik in Maharashtra and Jaipur (Rajasthan) have resumed their operations.

Tata Motors: The company has decided to withdraw the proposed issuance of unsecured, non-convertible debentures (NCDs), aggregating up to Rs 1,000 crore on a private placement basis.

Cadila Healthcare: Zydus Cadila receives final approval from USFDA for Deferasirox tablets for oral suspension.