Index trend and stocks in action on July 10, 2020
Nifty opened the session with a positive bias and extended its upmove to close above the 10,800 mark.
The price action of the day formed a bullish candle. Despite that, Nifty was not able to cross above Wednesday’s high but at the same time, it did not breach its prior bar low. Hence, this resulted in the formation of an inside bar on the daily chart. Furthermore, Nifty traded with an extremely narrow range of 104 points and it was the lowest range in the last four trading sessions. As a result, it led to the formation of the NR4 bar.
Usually, this kind of volatility contraction is followed by sharp moves in either direction. Let us wait for a breakout or breakdown for a decisive move on either side between the range of 10,848 and 10,676.
Now going ahead, the level of 10,848-10,880 is a crucial resistance zone for the bulls and momentum is likely to be seen only if the bulls cross this hurdle. On the downside, a weakness could be seen if Nifty slips below the level of 10,676, and in case the index slips below this level, it would open gates for a further correction towards the levels of 10,600 or below.
PNB: A fraud of Rs 3,688.58 crore has been reported by Punjab National Bank to RBI in the accounts of Dewan Housing Finance Corporation Ltd (DHFL). The bank had already made provisions amounting to Rs 1,246.58 crore, as per the prescribed prudential norms.
GAIL: The board of directors of the company is scheduled to be held on July 25 to consider and approve a proposal for the sub-division of equity share of the company of face value of Rs 2 each into two equity shares of the face value of Re 1 each.
Reliance Industries: BP and Reliance Industries announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited (RBML).
Seamec Limited: The company informed that its vessel Seamec Gallant Time Charter with Clipper Bulk Shipping Ltd, has been extended for a further period of one year having a window of six to twelve months. The annualised value of the charter is about US$ 2.88 million.
Tata Motors: Jaguar Land Rover retail sales for the three-month period to June 30, 2020 were significantly impacted by COVID-19 in line with the unprecedented market conditions but improved month-on-month through the quarter. June retail sales were 35,334 vehicles, down by 24.9 per cent YoY, but represented an improving monthly trend within the overall quarter, with the total sales of 74,067 which was down by 42.4 per cent YoY.