Index trend and stocks in action on June 26, 2020
Thursday was a very volatile session and things were changing rapidly on the expiry day for June derivative contract. Nifty opened the session on a negative note and also, touched an intraday low of 10,194 and a high of 10,361 before closing below 10,300 level with a net loss of 16 points or 0.16 per cent.
The price action formed a small body bullish candle, bullish because the closing was higher than the opening. After the formation of a bearish engulfing candlestick pattern, there was a lack of follow-through sell-off. During the day, Nifty breached its prior session low but it did not close below the prior session low.
Going ahead, Thursday's high of 10,362 is an important resistance. As long as this is protected, the bulls may not get a clear opportunity. The bulls would get strength only above the level of 10,362. On the flipside, a move below the level of 10,170 is expected to drag Nifty towards the next lower support of 9,930, which is rising wedge support line and also, 61.8 per cent retracement level of the recent upswing, which began on June 12.
RSI on the daily timeframe is above 60 mark but it trades below its nine-day period average while, on the hourly timeframe, it bounced exactly from 40-mark but made a double top around 50-mark. On the hourly timeframe, -DI is above +DI and ADX, which indicates bears has an upper hand. As long as bulls defend the level of 10,170 on the downside, we will not see any panic in the markets.
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