Index trend and stocks in action on May 21, 2020

Nifty traded in a capped range in the first half of the session but it gained momentum in the last leg of the trade. It gained over 200 points from the day’s low and finally closed with a net gain of 2.11 per cent.

The price action of the day formed a sizable bullish candle. Nifty closed above the previous day’s high and at the same time, it managed to hold above its prior bar low. This higher high and higher low is a bullish signal. Further, to continue this positive momentum, it requires a follow-through day. Let us wait and watch for further bullish confirmation.

Nifty did manage to close above the prior bar high and also, above 9,050 but it traded within a high-low range of Monday’s bearish belt hold. A move above Monday’s high would give a confirmation above the temporary bottom formation and Nifty would aim to test the levels of 9,400-9,450 in the near term. The 50-DMA is placed at 9,155 so, by closing above Monday’s high, Nifty will cross two hurdles in one go.

To conclude, we have quite a few positive takeaways from Wednesday’s session and a move above 9,158 levels would give a confirmation of temporary bottom. As long as the level of 8,800 is protected on the downside, bulls might have an advantage.

Tata Power: Tata Power International Pte Ltd (TPIPL), a wholly-owned subsidiary of the company, has acquired 10 per cent equity stake in Adjaristsqali Netherlands BV (ABV) from International Finance Corporation (IFC) for a sum of USD 1,50,000.

Tata Motors: The board of the company approves offering a subscription of NCDs worth Rs 1,000 crore on a private placement basis.

Kalpataru Power: The board of directors of Kalpataru Power has approved a proposal for the issuance of secured/unsecured, redeemable, non-convertible debentures up to Rs 300 crore by the company, in one or more tranches.