Index trend and stocks in action on February 05, 2020
After a sharp decline on the Budget Day, there was no follow through selling, seen on Monday as the markets consolidated and ended the day in green. Monday’s session was just a teaser by the bulls but what was next to follow, no one would have ever imagined! On Tuesday, Nifty posted a mammoth rally of 2.32 per cent within a stone’s throw distance of 12,000 mark. Nifty posted its best single day rally in percentage terms since October 24, 2019.
The price action formed a sizable bullish candle with unfilled opening upside gap. The index has recovered almost the entire losses which were registered on the Budget Day in the last two trading sessions and in this process, Nifty has moved past the 100-DMA. Also, Nifty has retraced about 50 per cent of the recent fall witnessed from the all-time high levels of 12,430.50. Going ahead, the Budget Day high of 12,017 is likely to act as an immediate resistance for the index. Moving past this resistance zone is likely to help bulls reclaim its 20-DMA which currently stands at 12,140. On the downside, a support is seen at the opening upside gap area (11,783-11,750).
The splendid performance put up by the bulls in Tuesday’s session has managed to restore confidence of the market participants and again the strategy of buy on dips would be adopted. For the near term, the gap area is likely to act as a strong support for the index.
Reliance Industries: Reliance Industries has acquired an additional 65,956 equity shares, representing 10.9 per cent of the equity share capital of Saavn India from the existing shareholders for a total consideration of INR 653.93 crore on February 3, 2020. After the acquisition, RIL will hold 94.4 per cent of the equity share capital of Saavn India.
Cadila Healthcare: USFDA inspected the manufacturing facility of Alidac Pharmaceuticals Ltd, the company’s wholly-owned subsidiary, located at SEZ, Ahmedabad from January 27 to February 4, 2020. At the end of the inspection, no observation (483) is issued. The site manufactures oncology injectable for the regulated markets.
Teamlease Services: The company has acquired an additional 21.24 per cent stake in IMSI.
BEML: BEML is participating in a big way by showcasing its products at the indoor and outdoor pavilions during DEFEXPO show, the biennial mega defence exhibition being held in Lucknow (UP) from February 5 to February 9, 2020.
Sun Pharmaceutical: Sun Pharma introduces ABSORICA LD (Isotretinoin) capsules for the management of severe recalcitrant nodular acne in US.