Index trend and stocks in action on August 28, 2020
Thursday’s session was the fifth successive session in a row, where the index formed higher high and higher lows.
The market opened with a positive bias and marked a high of 11,617.35. Thereafter, it traded in a defined range, and in the second half of the trading session; bears pushed the index below its opening level. Finally, Nifty ended the day with a minor gain of 9.65 points or 0.08 per cent to close at 11,559.25.
The price action formed a bearish candle, carrying higher high and low. Further, the daily range of Nifty from high to low was about 77 points and this was the narrowest range out of the last four bars. Hence, it was an NR4 pattern. This pattern helps to identify a quiet period before the next explosive move in the markets. Hence, in today’s session, traders can expect the volatility to pick up.
In the coming session, the zone of 11,530-11,500 is crucial to monitor as it is the confluence of upward sloping trendline support and 20-hour EMA level. Failure to hold above the 11,500 mark could be the first sign of weakness. In that case, Nifty could fall up to the zone of 11,420-11,360. On the higher side, if the markets move above Thursday’s high of 11,617 and sustain there, then the bulls will have an upper hand and the level of 11,680 would become the next hurdle for the index.
Yes Bank Ltd: CRISIL has upgraded its rating on Rs 20,000 crore certificates of deposit (CD) of Yes Bank Ltd to ‘CRISIL A2+’ from ‘CRISIL A2’. It has reaffirmed its ‘CRISIL BBB/Stable’ rating on the bank’s tier-II bonds (under Basel III) and infrastructure bonds.
Artson Engineering Ltd: The company has received a letter of intent (LOI) or Rs 16.63 crore, including GST from Tata Project Limited. The order is for site fabrication, erection, testing, commissioning of storage tanks & misc. supplies for BPCL Bargarh Project (Odisha).
Mahindra & Mahindra Ltd: The company has announced the introduction of Marazzo with BSVI technology. Marazzo, India’s safest MPV will now be available with a BSVI-compliant powertrain at a starting price of Rs 11.25 lakh.
GMR Infrastructure Ltd: The company has announced a composite scheme of the arrangement, involving vertical split demerger of the non-airport business (energy, EPC, urban infrastructure, etc.) of GMR Infrastructure Ltd (GIL) into GMR Power & Urban Infra Ltd (GPUIL) as a going concern, including an amalgamation of GMR Power Infra Limited (GPIL) with GIL, as a step preceding demerger.