Index trend and stocks in action on March 03, 2020
After a landslide witnessed in the last week, Nifty opened the session on a positive note and as the day progressed, it built early gains and registered a high of 11,433 but a panic sell-off was seen in the last hour of the trade owing to the news of two positive cases of COVID-19 in India. At one point, Nifty lost almost 397 points from the day’s high, however, recovery from lower levels was seen and finally, Nifty ended the day with a net loss of 69 points but it lost 301 points from the day’s high.
The price action formed a sizeable bear candle. Going ahead, the level of 11,020 is likely to act as a support for the index as its 78.6 per cent retracement level of up move was seen from the levels of 10,637 to all-time high levels. Failure to hold this key support level may open gates for further correction towards August 2019 low of 10,637 levels in medium term. While, on the upside, an immediate resistance is placed at 11,254 levels followed by 11,400 mark. The D-street has been gripped by volatility in the recent times and volatility is likely to stay here for some time as the market participants are seen reacting to the news of Coronavirus.
The 14-period RSI is quoting at 23.56 it has marked a fresh 14-period low, which is bearish but at the same time, deeply oversold reading. The daily MACD continues to trade bearish while trading below its signal line.
All-in-all, the market participants have to deal with a high volatility and the apparent reason for high volatility is the news of Coronavirus. Hence, we would advise the traders to avoid leverage position and not to take aggressive long positions. Also, when the volatility is at historic levels, it’s better to trade with minimal quantity and save your forces.
Mahindra Lifespace Developers: Mahindra World City Developers, a subsidiary of the company, has received an approval of partial de-notification of the notified area under Special Economic Zone (SEZ).
Newgen Software Technologies: Newgen secures patent for a system and method for automatic quality assessment of digital documents. The patent is to boost Newgen’s product effectiveness.
Torrent Power: Based on a letter of intent and distribution franchisee agreement entered into with Maharashtra State Electricity Distribution Company Limited (MSEDCL), the latter has handed over the SMK area and its operations to the company on March 1, 2020.
Infosys: Infosys & IBM collaborate to help businesses accelerate digital transformation with IBM Public Cloud.
Tech Mahindra: The sanction of the scheme of merger by absorption between Tech Mahindra Growth Factories Limited and DynaCommerce India Private Limited with Tech Mahindra and their respective shareholders by honourable NCLT, Mumbai and Bengaluru.
DB Realty: Defaulted on payment of interest/repayment of the principal amount on loans worth Rs 80 crore from HDFC Bank.