Index trend and stocks in action on May 27, 2020

Jack and Jill, the protagonists of one of the famous nursery rhymes, seem to come alive with what happened on D-Street on Tuesday.  The 50-share index Nifty went up the hill in the initial part of the session; however, it failed to capitalise on the initial gains and it came tumbling down. It fell about 133 points from the day’s high and closed at 9,029.

Technically, Nifty’s price action for the last five trading sessions is restricted to the range of bearish belt hold pattern, which was formed on May 18. However, there were two key takeaways from Tuesday’s session. First is that Nifty formed a higher high and higher low as compared to its prior bar and secondly, Nifty closed at 50-DMA.

Traders would take aggressive bets on the long side only above the high of May 18 (9,158) and on the downside, the level of 8,800 is likely to act as a strong support in the near term. At present, the market is in a state of confusion about the direction as neither has broken its support nor it has managed to breach the resistance.

Overall, this range is going to be a crucial one to be watched by traders and breach on either side is likely to result into a trending move for the short-term.

Bharti Airtel: Bharti Telecom raised over Rs 8,433 crore (USD ~ 1.15 billion) through accelerated book-build offering of equity shares of Bharti Airtel. Sale proceeds to be fully-utilised to repay debt at Bharti Telecom Limited and make the promoter holding company a ‘debt free company’.

Kotak Mahindra Bank: The board approves opening of QIP on May 26. Bank has set a floor price of Rs 1,147.75 per share for offering.

Century Plyboards: The company has informed that Cyclone AMPHAN struck the district of South 24 Parganas in West Bengal on May 20, 2020 leading to an extensive damage to the factory shed and building at company’s Joka factory near Kolkata. The plant production has been partly shut down and all measures are being taken to resume the operations safely.