Index trend and stocks in action on May 18, 2020
Nifty had a listless start to the previous week and thereafter, it moved into a downward trajectory. It registered a new swing low of 9,044 on Tuesday and closed below 20-DMA for the first time since April 8, 2020. However, the announcement of big bang stimulus package of Rs 20 lakh crore well-known as Atmanirbhar Bharat Abhiyan economic relief package excited the bulls and Nifty witnessed a strong gap-up opening. But this optimism faded soon and Nifty not only gave up all its gains but also ended near its day low.
On Wednesday, Finance Minister announced the first tranche of details of the package and the market participants were not impressed by it and they believed it’s too late kind of announcement. Hence a gap-down on Thursday, with this another bearish island reversal pattern was formed.
For the week, Nifty lost about 1.24 per cent and formed a bear candle with a long upper wick, which indicates a selling pressure at higher levels. Technically, Nifty is still trading in a tight range. The critical level of 9,116 protected on a closing basis once again.
Going ahead, the level of 9,000 would be crucial level to watch out and any move below this level, could lead to further downside towards 8,820 levels. Meanwhile, on the upside, Thursday’s gap which stands at 9,281-9,351 is likely to act as a resistance.
Reliance Industries: General Atlantic to invest Rs 6,598.38 crore in Jio Platforms.
KNR Constructions: Receipt of orders worth Rs 2,309.23 crore from Irrigation & CAD Department, Government of Telangana.
Future Consumer: The board approved fundraising up to Rs 300 crore through a right issue.
Godrej Consumer Products: The company through its wholly-owned subsidiary has acquired balance of 25 per cent stake in Canon Chemicals Limited.