Index trend and stocks in action on May 12, 2020

Nifty had a fantastic start to the week and soon, it moved higher to register a high of 9,440. But, as we have talked about strong resistance around the level of 9,450, Nifty took a U-turn from this level and erased its entire gains. Finally, it ended the day with a miniscule loss of 0.13 per cent.

Nifty almost lost 200 points from the day and in the last five trading sessions, it tested the level of 9,440-9,450 twice. The price action formed a bear candle with an upper shadow, which indicates selling pressure at higher levels.

Nifty breached its important support of 20-DMA on intraday basis but on closing basis, it has managed to held its 20-DMA. Going ahead, the zone of 9,188-9,240 is a crucial support level as 38.2 per cent retracement level and 20-DMA is placed in this region. A move below this level could take Nifty towards 8,972 levels in the short-term.

On the upside, the zone of 9,350-9,450 is likely to act as a stiff resistance and only a move above 9,450 would result into a bullish phase.

Bollinger band contracted further, which indicates it’s the calm before the storm.

Overall, Nifty is on the edge of the cliff, a move below 9,188 would invite bears for the feast.

IND-Swift Laboratories: Ind-Swift Laboratories has received an establishment inspection report (EIR) from USFDA, for the surveillance GMP inspection of its API manufacturing facility located at Dera Bassi (Punjab). USFDA inspection was conducted from March 9 to March 13, 2020. The EIR has been issued without any form 483 observations.

Ashok Leyland: The company to consider raising Rs 300 via NCDs with a green-shoe option of Rs 200 crore on May 14, 2020.

InterGlobe Aviation: It clarified that it has not formulated any proposal or shown interest in Virgin Australia.