Index trend and stocks in action on May 11, 2020

Nifty started off the week with a huge gap-down on Monday as it sustained below the opening level in the previous week. As a result, Nifty closed almost 6.17 per cent for the last week. The broader market indices Nifty Mid-cap and Small-cap indices lost 5.28 and 4.10 per cent, respectively.

In percentage terms, it appears to be a sharp cut when compared to the previous week’s close but Nifty mostly traded in a range and supports were not broken. The 20-DMA has acted as a strong support for the past three days. To get a trend reversal signal, Nifty needs to close below the prior swing low. The level of 9,116 is a crucial and immediate support for Nifty. An aggressive sell-off can be witnessed below these levels. In that case, Nifty can move down towards the levels of 8,900-8,820.

On Friday, Nifty attempted to cross 9,350 levels but it failed to sustain at higher levels. Hence, in the coming session, an immediate resistance for Nifty is placed around this level, followed by 9,450 level.

Overall, Nifty is likely to trade in the range of 9,100-9,450 range. Break on either side is likely to result in a trending move.

Cipla: Cipla gets EIR for its API facility in Bengaluru from USFDA.

Sequent Scientific: CA Harbor Investments, an affiliated entity of CAP V Mauritius Limited and Carlyle Group have agreed to acquire an equity stake of up to 74 per cent in SeQuent Scientific Limited, the largest pure-play animal healthcare company in India. CA Harbor Investments proposes to acquire a majority stake in SeQuent via private share purchase agreements, for a purchase price of Rs 86 per share.

Minda Corp: Calls off Joint Venture with Shandong Beiqi Hai Hua Automobile Parts (China) for producing and selling automotive components/parts. The JV had not started any business and did not generate any revenue since the establishment of joint venture company in China.

Lupin: The company has announced about the successful close out of the inspection carried out by Medicines and Healthcare products Regulatory Agency (MHRA), the regulatory agency of United Kingdom (UK), at its three manufacturing units in Pithampur (India). The inspection for the three units at Pithampur (Unit I, Unit II and Unit III) was conducted in January 2020.