Index trend and stocks in action on February 28, 2020
The expiry day of February series saw Nifty succumbed to selling pressure immediately after opening on a flat note. It breached its February 3 low of 11,614 and marked a new low of 11,537. In the last leg of trade, Nifty managed to recover almost 100 points from the day’s low but it ended the day in a negative terrain for the fifth straight session.
The price action formed a small body negative candle with a long lower shadow. Technically, this pattern is known as ‘hammer’ candle pattern. Usually, this type of candle formation after a reasonable decline is considered as bullish reversal pattern; however, a conformation is required.
The 515 points decline in the last five days was due to a global sell-off and continuous FII selling. The breadth is becoming much more negative for now. With the formation of two significant lower highs and lower lows, the market entered into a clear downtrend. The downward channel support is placed around 11,500-level. After more than four per cent fall, Nifty may take the support at 11,500-11,550 zone. In any case, if it fails to hold the channel support, the fall will become much more severe. The RSI is also moving in a downward channel.
All-in-all, we would advise our reader to avoid catching the falling knife! Buy only when a clear bullish close above the prior day's high. Near term support is at 11,500-level. A move below 11,500 is likely to continue the negative trend whereas, a move above 200-DMA will result into a range-bound of positive movement.
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GTPL Hathway: Jio Content Distribution Holdings proposes to sell up to 43.12 lakh shares of the company via OFS. The floor price for the OFS has been fixed at Rs 63 per share.
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Canara Bank: Canara Bank has today executed a Share Purchase Agreement (SPA) for the sale of its entire equity stake of 3.25 per cent in Petronet MHB Ltd (unlisted).
Godrej Properties: Godrej Properties adds a new project in Mumbai.
Petronet LNG: Petronet LNG signed a non-binding MoU with Tellurian Inc.