Index trend and stocks in action on July 31, 2020
The 50-share index, Nifty went up the hill in the initial part of the session; however, in the second half of the session, it tumbled down to end the session near the day’s low. The occurrence reminded of the famous rhyme-Jack & Jill as that’s what took place in the markets on Thursday.
It fell more than 200 points from the day’s high and closed below the prior session’s low.
The price action formed a bearish candle with a lower high and lower low. Nifty registered its lowest closing for the last eight trading sessions. Further, it has closed at critical rising wedge support. The price has not given any breakdown signal but the indicators are already in a bearish mode. As we have mentioned, the level of 11,058 is critical for the market in the near future, now, 11,058-11,000 is a critical zone of support.
The MACD has given a sell signal by closing below the signal line. As we had mentioned earlier, the RSI has given confirmation to the negative divergence and broken the key supports. As of now, Nifty closed at the critical rising wedge support line. Unless Nifty breaks the support zone of 11,058-11,100, we need to wait and watch for a bigger trade. A weekly close below 11,058 could lead to 10,800 levels. However, a close above Thursday's high would be a positive sign.
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