Index trend and stocks in action on May 29, 2020
Nifty clocked its gains on the second straight day and ended just below 9,500 mark at 9,490, up by 1.88 per cent. Around 84 per cent of Nifty 50 stocks advanced on Thursday. Nifty has gained just over five per cent during the last two trading sessions of May series and this has aided Nifty to keep losses restrictive up to 3.75 per cent.
The price action of the day formed a bull candle carrying higher high and higher low, indicating follow-through buying interest. Over the last one month or so, what was missing in the markets was a follow-through action post a sizable bullish candle. However, this time, we have seen a follow-through action on Thursday and Nifty touched almost 9,500 mark. The market breadth was also in favour of advancers on Thursday. With a strong upmove of over five per cent from Wednesday’s low in the last two trading sessions, Nifty has retraced more than 78.6 per cent of down move, which began on May 13.
Nifty has managed to close above the bearish gap which was formed on May 14. Going ahead, the high of May 13 session (9,584.50) is likely to act as a strong barrier for the bulls. In case Nifty moves above this resistance levels, it may try to fill the bearish island gap, which was formed on May 4 (9,731.5-9,533.50).
Meanwhile, on the downside, an immediate support is seen around 9,350-9,450 region. The short-term trend remains in favour of the bulls and we advise a buy on dips strategy for now. As long as Nifty trades above 20-DMA, shorting is a bad idea unless, Nifty closes below the prior bar low.
Wipro: Wipro announced that it has been positioned as a leader across several categories in teknowlogy I PAC Group's internet of things (IoT) consulting and system integration (C&Sl) survey.
Cadila Healthcare:The company’s formulations manufacturing facility located at Baddi (Himachal Pradesh) has received an establishment inspection report (EIR). The EIR report stated that the classification of the facility is ‘no action indicated (NAI)’.
HCL Technologies: HCL Technologies and Broadcom expand their global preferred services partnership to include Symantec enterprise security consulting.
Pidilite Industries: The company has completed the acquisition of 70 per cent equity shares of Tenax India Stone Products Private Limited.
NHPC: The board of directors of the company has considered and approved the proposal regarding the diversification of business of the company by developing solar power projects as an intermediary procurer through solar power developers.