Index trend and stocks in action on July 06, 2020

Karan Dsij
/ Categories: Trending
Index trend and stocks in action on July 06, 2020

The hopes of potential COVID-19 vaccine and the positive global cues from the global markets propelled the markets last week, as a result of which, the markets extended its rise for the third consecutive week in a row.

For the week, Nifty ended higher by 2.16 per cent. On the other hand, underperforming the frontline gauges, the broader indices ended last week with a divergent trend wherein, Nifty Mid-cap ended higher by 0.5 per cent while Nifty Small-cap dipped 0.05 per cent.  

On Friday, Nifty extended its upmove for the third straight day in a row and ended above the 10,600 mark. On the daily timeframe, as Nifty closed near its opening level, it had formed a Doji candlestick pattern indicating a tug of war between the bulls and the bears, after a rise of over 300 points from Tuesday’s session low. 

However, on the weekly timeframe, Nifty has formed a sizable bullish candle as well as negated the prior week’s spinning top formation and closed above the high of the prior spinning top candle.

Going ahead, Nifty is now approaching its gap, which has been formed on the weekly time scale between 10,827.40-10,751.55. Above this level, the next resistance is placed at the most-widely followed moving average to determine the primary trend of security i.e. 200-DMA, which is placed at 10,889.

Nifty has gained nearly 41.5 per cent from March low while, decisively closing above the 61.8 per cent retracement level of the fall. These signs are of a healthy trend as we have seen a sequence of higher top and higher bottom formed on the daily time scale. During this entire uptrend from March lows, each of the downswings is restricted to 3-4 trading sessions.

All eyes will be on Monday’s session to see whether we get confirmation of a Doji formation or not. A close below 10,562 levels would result in the confirmation of a Doji formation.

In the coming trading session, important support is placed at 10,562 and resistance will be seen around 10,631, followed by 10,751.

 

HDFC Bank: The bank’s advances grew around 21 per cent YoY while its deposits reported a growth of 25 per cent.

Astrazeneca: AstraZeneca Pharma India Limited receives import and market permission in Form CT-20 (marketing authorization-additional indication) from Drugs Controller General of India (DCGI) for Dapagliflozin film-coated tablet 10mg.

IFB Agro Industries: Noorpur distillery has resumed its operations on July 2 after police posted at the plant.

NLC India: NLC India and Coal India executed a JV agreement for the formation of a Joint Venture Company (JVC) to develop solar and thermal power assets to the tune of 5,000 MW on a pan India basis.

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