Index trend and stocks in action on July 09, 2020
After a five consecutive positive trading session, Nifty ended Wednesday’s trading session in the red as a sudden bout of selling that emerged in the last hour of the trade pushed the index in red terrain. Nifty finally settled the day with a loss of 94 points at 10,706.
The price action of the day formed a sizable bear candle. This bearish candle formation has come along with a rise in the daily range. Wednesday’s trading range was about 171 points whereas; the 10-day average daily range is 125 points. The bulk of the losses were registered in the last hour of the day.
Now, the question arises-Is market going to enter into a consolidation or a corrective phase? For that, we need to watch the price behaviour and the daily bar size in the next couple of trading sessions. Going ahead, the initial target for Nifty is placed at 10,631, followed by 10,521 if going ahead, Nifty witnesses a follow-through selling below the lows of Wednesday.
RSI on the hourly time scale and a negative divergence were spotted and now going ahead, on the hourly time frame, the level of 40 is a key level to monitor. Further, the directional index has given a negative signal as–DI has crossed above +DI line.
Keep a close watch on the level of 10,676 as a decisive move below this level would give further power to the bears!
Phoenix Mills Limited: The company has informed the launch of its new mall 'Phoenix Palassio' in Lucknow.
ICICI Bank: The board at its meeting has approved fundraising for an amount aggregating up to Rs 150 billion.
SBI: Executive Committee of Central Board (ECCB) of State Bank of India (SBI) at its meeting has accorded approval for a maximum investment of up to Rs 1,760 crore in the further public offering (FPO) of Yes Bank Limited.