Index trend and stocks in action on May 13, 2020

Nifty opened the session with a gap-down and it extended its downfall in this process. It breached its swing low of 9,116 and made a new swing low of 9,043. However, contrary to the behaviour seen over the past few days; in the second half of Tuesday’s trading session, Nifty recovered sharply from the lows to end the day tad below 9,200 mark.

The price action for the day formed a hammer-like pattern. As we expected on Tuesday, it tested and went below 9,116 levels. But with the news of Prime Minister’s address to the nation and expectations of the economic package, it bounced sharply. With a sharp bounce caused due to short covering, Nifty once again entered into the zone of 9,116-9,450.

Going ahead, the level of 9,450-9,510 is a key level to watch out on the upside. Sustaining above this would open up for further upmove towards 9,710-9,800 in the short-term.

Meanwhile, on the downside, the key level to watch out would be 20-DMA, which currently stands at 9,240.

Overall, it would be important to see whether Nifty is able to extend its gains after a gap-up opening or not.

Jubilant Life Sciences: Jubilant Life Sciences Limited enters into a licensing agreement with Gilead for Remdesivir, a potential therapy for COVID-19.

Vedanta Limited: The company’s promoter group has informed their willingness to accept the equity shares of the company tendered by the public shareholders in the delisting offer at Rs 87.5.

Apollo Microsystems: Apollo Microsystems has extended the timeline for making investment in Ananya SIP RF Technologies for a further period of 90 days.