Index trend and stocks in action on July 01, 2020
Nifty began the session on a firm note, however, it failed to capitalise on it and in the second half of the trade, it succumbed to selling pressure and at once, breached 10,300 mark but some recovery in dying movements helped Nifty to claw back above 10,300 mark and end the day with modest losses.
On the daily chart, Nifty formed a bearish candle after two successive days of the Doji formation. In the last four trading sessions, Nifty is seeing a narrow range of 10,194.50-10,409.85. During this range-bound trading, the majority of the candle formation is indecisive in nature. Besides, it clearly indicates that a tussle is seen between the bulls and bears. Bulls are not letting the price drop, while bears are not letting it move higher.
Usually, this type of tight consolidation leads to sharper moves. Earlier, similar consolidation was seen between May 18-May 26 and after breaking out of the range, the index marched nearly 14 per cent.
Trend traders would be hoping this consolidation to take some decisive direction by breaking out of this range. As trading in such a narrow range is providing enough opportunities to trade. Hence, on the higher side, keep a watch on 10,410 mark and on the downside break, watch out 10,194 levels. Break on either side would open doors for a directional move.
A sustainable move above 10,410 would open doors for 200 points and similarly, a move below 10,194 would result in a swift move of 200 points.
Bharti Airtel: Carlyle to acquire approximately 25 per cent stake in Airtel’s Data Centre business at a valuation of US$ 1.2 billion.
Affle India: The subsidiary of the company on June 30, 2020, completed the necessary closing conditions for the acquisition of 66.67 per cent shares of Appnext Pte Ltd and our step down subsidiary has completed the necessary closing conditions for the acquisition of 100 per cent Tech assets.
Marico: The company has acquired the balance equity stake of 55 per cent in Zed Lifestyle Private Limited from its existing shareholders.
Hero Motocorp: Building on its focussed strategy of creating a robust portfolio of premium products, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, has commenced the dispatches of its eagerly-awaited new motorcycle-Hero Xtreme 160R.
Jindal Steel and Power: The company is set to sell stake in its Oman subsidiary, Jindal Shadeed with a deal size of over US$1 billion to enable the company’s debt reduction plans.