Index trend and stocks in action on April 08, 2020
A lot of cricket fans were reliving the epic world cup final in 2011 at the beginning of April month as it was in the same month that India lifted the world cup after 28 years. And, how could one forget that memorable shot of MS Dhoni! On Tuesday, I am quite sure that many of the market participants would have experienced the same feeling as the bulls hit it out of the park, witnessing one of the biggest single day gains since 2009, with Nifty registered staggering gains of 8.7 per cent.
Nifty opened gap up; it sustained the gains and closed near the day’s high. As a result, Nifty formed a sizable bullish candle and it close above 23.6 per cent retracement decisively. On March 27, Nifty registered a swing high of 9,038.90 and thereafter, in the next four trading sessions, it retraced about 61.8 per cent of earlier three sessions up move and with a slower pace of retracement, it clearly hinted that the almighty bears were losing their momentum as golden ration (61.8 per cent retracement) acted as strong support.
Nifty made a higher low but now, it needs to move above the valley point of 9,038.90. In any case, the double bottom breakout is likely to happen. However, if we see a lower time frame, hourly chart, the counter trend consolidation pattern, the flag is clearly visible. The index also reached near 20-DMA. This 20-DMA could act as a minor resistance as well.
Going ahead, 20-DMA (8,906) is likely to act as a stiff resistance for Nifty, followed by 9,039 and above this, Nifty may test 9,390 levels. On the downside, the level of 8,500 is likely to act as a strong support.
Overall, 20-DMA is likely to be watched closely by the traders and sustaining above 20-DMA, may open doors for further upside.
Advanced Enzyme Technologies: Advanced Enzyme Technologies said that it will continue to carry on the production in its manufacturing units in India with the permission of local authorities and the operations as its plants have been scaled down with reduced capacity utilisation.
Galaxy Surfactants: The company has partially resumed their operations at their plants with effect from April 6, 2020.
Hero Motocorp: With customer-centricity at the core of its operations, Hero MotoCorp, has extended the duration of all its warranty and free services in view of the nationwide COVID-19 lockdown.
Deepak Nitrite: The chemical manufacturing company has received an approval by Vadodara District Industries Commissionerate, to commence the production of 2-ethylhexyl nitrate (EHN).