Index trend and stocks in action on June 24, 2020

Karan Dsij
/ Categories: Trending
Index trend and stocks in action on June 24, 2020

After consolidating in a narrow range in the previous session, the bulls appear to have found their feet on Tuesday and as a result, Nifty extended its gain for the fourth day in a row and closed above 10,450 mark with net gains of 1.55 per cent. Around 46 stocks of Nifty50 ended in green.

Nifty formed a sizable bullish candle carrying higher high and higher low and also closed convincingly above the prior bar high. With this, Nifty negated Monday’s Doji pattern implication. Now, Nifty is heading towards the level of 10,550, which is 61.8 per cent retracement of January-March fall, also known as Golden Ratio.

The zone 10,524-10,550 may work as a short-term resistance as 200-EMA and 61.8 per cent retracement level is placed in this zone. We expect Nifty to take a pause near this zone. However, we would advise the traders to look-out for stock specific trading opportunities.

The index is clearly in an uptrend and the trend strength is extremely high on the hourly timeframe. The average directional index (ADX), which shows the trend strength, is as high as 38.22 on an hourly timeframe. Generally, above 25 levels is considered as a strong trend and this ADX is in uptrending mode. The +DI is much above -DI. This structure is indicating a bullish strength in the index. 

All-in-all, Nifty has been making higher lows over the past seven sessions and it has nearly gained 10 per cent from the lows of 9,544. Hence, we would advise the traders to be with bullish bias.

 

United Spirits: Diageo India announced ‘Raising the Bar’, a 75-crore programme committed to support bars, pubs and restaurants serving alcohol to welcome customers back and recover following COVID-19 pandemic.

Just Dial: The company has fixed July 3, 2020 as the record date to determine the entitlement of equity shareholders in the buy-back and the names of shareholders, who would be eligible to participate in the buy-back.

PG Electroplast: The company’s Chairman has said, “With government sharpening focus on ‘Make in India’ in appliances and consumer durable space, PGEL is well-placed with its newly-commissioned room AC IDU facilities, ODM Washing machine offering own design and tool room capabilities. With proven capabilities and large-scale manufacturing capacities, the company today is a one one-stop solution partner and preferred vendor of choice to its OEM clients in consumer durable and automotive space in India.”

Kalpataru Power: The subsidiary of the company secures new orders of Rs 938 crore.

Wipro: Wipro awarded infrastructure modernisation and digital transformation contract by Germany-based energy company E.ON.

TCS: TCS deploys digital solution remotely to help Adani Ports transform Mundra operations.

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