Index trend and stocks in action on July 14, 2020
Nifty opened with a gap-up and with this gap-up opening, it surpassed the swing high of 10,848. Further, it attempted to move above the important 200-DMA but the bulls ran out of steam around its 200-DMA.
As a result, profit-booking emerged and during the day at one point, Nifty lost more than 100 points from the day’s high. However, recovery was seen in the last leg of the trade, which helped Nifty to keep its head above 10,800 mark.
The price action of the day formed a small body red candle with upper and lower shadow. Nifty closed within the tight range of 10,676-10,848. Also, it failed to close above the previous bar’s high.
Markets are clearly seeing hesitation at higher levels and Bank Nifty, which holds a significant weightage in the index, is also not able to lend support to Nifty. However, the attempted breakout of the range, to surpass 200-DMA, failed. Hence, going forward, the markets may continue to remain directionless unless, Nifty sustains above the 200-DMA, whose value is currently placed at 10,885.
The MACD histogram declined from 15.78 to 10.90, which indicates that momentum is waning. Our advice to traders is to initiate a long position only if Nifty sustains above the 200-DMA. While, on the downside, a close below the previous bar’s low will be the first sign of weakness. To take a bearish view on the market, it has to close below the last week's low of 10,676 decisively with the addition of distribution day.
Reliance Industries: Jio platforms Limited, a subsidiary of the company, received the subscription amounts from the following investors and allotted equity shares to them: VEPF VII AIV I, LP (Vista Equity Partners)- subscription amount of Rs 11,367 crore, Omicron Asia Holdings II Pte Ltd (KKR)- subscription amount of Rs 11,367 crore, MIC Redwood 1 RSC Limited (Mubadala)-Rs 9,093.60 crore, Platinum Owl C 2018 RSC Limited (acting in its capacity as trustee of ‘Platinum Jasmine A 2018 Trust’) (ADIA)-Rs 5,683.50 crore and India Markets Pte Ltd (TPG)- Rs 4,546.80 crore.
Cipla: The company updated that Cipla Technologies LLC and Pulmatrix has entered into a definitive agreement for the development and commercialisation of Pulmazole. Due to the delays in patient enrolment for the Phase 2a clinical study managed by Pulmatrix, the joint steering committee has terminated the Phase 2a clinical study in order to commence a new Phase 2b study with longer dose duration and efficacy endpoints, upon agreement negotiations with Pulmatrix being successful. It's Cipla’s position that under the terms of the agreement, it has the right to suspend additional funding under certain circumstances.
Adani Ports: Adani Logistics Limited has successfully completed its first-ever containerised cargo export from India to Bangladesh by utilising inland waterways.
Godrej Industries: The company approved the issuance of NCDs worth Rs 750 crore on private placement basis.