Index trend and stocks in action on May 28, 2020
After moving in a sideways range movement for the last five trading sessions, the bulls came out all guns blazing while, Nifty recorded its biggest single day gain in percentage terms post April 30. Out of 50 stocks in Nifty 50, 41 stocks ended in green while, nine stocks ended in red. More importantly, Nifty Bank outperformed Nifty 50 and as a result, all the components of Nifty Bank ended in green.
The price action for the day has formed a sizable bullish candle, carrying higher high and higher low. Nifty has now moved above its important moving average i.e. 20 and 50 moving average. It is trading one and 3.5 per cent above its 20-DMA and 50-DMA, respectively.
Key takeaways from Wednesday’s session are that Nifty has almost filled island gap, which was created on May 14. It has also retraced more than 61.8 per cent of the recent down leg.
Now, going forward, a follow through move above Wednesday’s high shows the current upmove being extended towards 9,450-9,480 mark in the near term. On the other hand, the level of 9,200-9,220 is a crucial support for the near term.
The 14-period RSI on the daily timeframe has marked a new 14-period high. The MACD on the daily timeframe turned positive as it trades above its signal line.
Overall, the follow through move is important for the index. Expect volatility to kick in on account of May series expiry.
Oil India Limited: A major blowout reported at Baghjan well no. 5 of under Baghjan Oilfield in Tinsukia district (Assam). Experts from OIL have reached the site and all-out efforts are on to control the well.
Quess Corp: The board has approved the acquisition of additional 25 per cent equity shares in TSSIPL; an associate company of Quess Corp from Heptagon Technologies Private Limited. Post transaction, the shareholding of Quess in TSSIPL stands increased from existing 49 per cent to 74 per cent thereby, making TSSIPL, a subsidiary of Quess.
Karnataka Bank: Karnataka Bank opens its 854th Branch at Kantanakunte GP (Bengaluru Rural District).
Indostar Capital Finance: Indostar announces the completion of equity raise of Rs 1,225 crore from Brookfield.
Alkyl Amines: The company’s efforts are on to achieve the optimum production in May 2020. The company is in a comfortable financial position to meet its commitments and will be able to meet all its debts obligations as they come up. Stringent cost control measures are being implemented across the organisation to address any evolving situation resulting from the pandemic.
Wipro: Wipro Gallagher Solutions launch NetOxygen Loan Origination Solution (LOS) version 7.0.