Index trend and stocks in action on May 19, 2020
Nifty opened the day with modest losses and the opening level turned out to be the highest level of the day. For the rest of the day, it was a complete massacre as the bears dominated D-Street after Nifty crashed over 300 points on Monday.
The price action formed a bearish belt hold pattern. Further, Nifty came out of the range and closed below the support of 8,909. On the daily chart, the index has fallen towards its daily lower bollinger band and the bands are expanding on daily as well on the hourly chart. This set-up indicates that the selling pressure could continue and the index can continue its downward trajectory.
Nifty has retraced more than 50 per cent of the prior rise and the next major support is placed in the region of 8,756-8,800 as 61.8 per cent retracement is placed in this region. On the upside, the zone of 9,050-9,165 is likely to act as a resistance level for the index.
Given the sharp fall, we could see some rebound in the deeply hammered stocks. But, any bounce back or a relief rally is likely to remain capped. As long as Nifty stays below the level of 9,050-9,165, sell on rallies would be advised to the traders.
VEDL: Vedanta said that its board has given a green signal to the company to seek shareholder’s approval for the delisting proposal by way of a special resolution through postal ballot and e-voting.
Tata Consumer: Tata Consumer Products announced that it will acquire PepsiCo’s stake in NourishCo Beverages Limited, a 50:50 JV between the two Companies. This move is consistent with Tata Consumer’s focus on widening its portfolio in the food & beverages space.
Aditya Birla Fashion & Retail Ltd: The company proposes to raise funds by issuing 4,000 rated, listed, non-convertible, redeemable, unsecured NCDs of Rs 10,00,000 each aggregating up to Rs 400 crore (including a green shoe option of Rs 100 crore) on a private placement basis.
Raymond: Raymond board to consider and approve the issue of NCDs worth Rs 100 crore on a private placement basis on May 21, 2020.