Index trend and stocks in action on February 27, 2020

Nifty opened gap down in the early trade, following weak global cues however, it attempted a modest recovery before succumbing to selling pressure in the later half, which dragged the index to the new low. At the end of the day, Nifty lost 119 points or 1.01 per cent to close at 11,678.50.

The price action formed a long bear candle with wick on either side. With Wednesday’s fall, the index has filled up the gap which was created on February 4. The index breached its crucial 200-DMA and with this, index trades below all its important moving average. Further, the magnet of the market 20-DMA and 50-DMA are trending down. Currently, Nifty is trading over 3.5 per cent below 50-DMA.

Going ahead, for now, the 11,614-11,550 zone is the only visible critical support. As we are in the process of closing February derivative series, we can see a very volatile session. In any case, 3rd February low of 11,614 breaches, the long-term trend also becomes bearish.

All-in-all, holding the low of 11,614 of February 3 will result into a double bottom support and considering a sharp decline of almost 500 points in just four trading session, a short-covering rally is likely on the cards on the eve of February derivative series.

Hindustan Unilever: Chandigarh NCLT bench approved the merger of GSK Consumer Healthcare and Hindustan Unilever. The effective date of the merger is likely to be communicated soon.

Biocon: US Food and Drug Administration (USFDA) conducted a post-approval and GMP inspection of small molecules API manufacturing facility at 20 km, Biocon Campus (Bengaluru) between February 20 and February 26, 2020. At the conclusion of the inspection, the agency issued a Form 483 with two observations, which are procedural in nature. 

Adani Port and Special Economic Zone: The company has incorporated a wholly-owned subsidiary namely Adani Bangladesh Ports Private Limited (Bangladesh).

RITES: Government to sell up to five per cent stake in company via OFS, floor price set at Rs 298 per share.

Concor: CONCOR and joint stock company-Russian Railways Logistics, have executed a Memorandum of Understanding (MoU) for cooperation and collaboration in promoting intermodal transportation of cargo over International North-South Transport Corridor (INSTC).