Index trend and stocks in action on August 05, 2020

Like cricketer Rohit Sharma, who is popularly known as the ‘double century man’, the bulls too seemed to be an avid cricket fan as Nifty hit a double ton on the D-Street and ended its four-day losing streak and also, reclaimed its 11,000 mark.

The price action of the day formed a bullish candle and negated the formation of lower high and lower lows of the last three trading sessions. Nifty managed to hold its 200-DMA and closed above its 20-DMA. Now going forward, a follow-through day is important for the continuation of the rally.

With Nifty defending its important long-term moving average and witnessing a strong rebound from this area, it is clearly indicating at a short-term bottom formation. On the downside, immediate support is seen around 10,974 levels, where the 20-DMA is placed and it becomes important to hold above this significant short-term average to maintain a bullish bias.

Meanwhile, the index retraced exactly 50 per cent of its last four days’ fall in just one day. Going ahead, the level of 11,167 is likely to act as a resistance level, followed by 11,245 level.

The formation of RSI hidden bullish divergence is being expected as the price has made a higher low and the RSI has a lower low.

All-in-all, a follow-through day is crucial for the confirmation of a short-term bottom formation. As long as Nifty holds above 20-DMA, be with a bullish bias.

Persistent Systems: The company receives the 2020 Workato Partner Award for Innovation.

SRF: The company informed that it has received its board’s approval for setting up of a BOPET film line in Hungary by SRF Europe Kft (a wholly-owned subsidiary of the company in Europe). The said project has been capitalised and commissioned on August 3, 2020, at an approximate cost of Euro 80 million.

NMDC: NMDC registers a record jump in the production and sales of iron ore in July 2020. Production improves by 35 per cent and sales by 20 per cent in Chhattisgarh.

Paushak: The company has received approval to its application for the amendment in Industrial License from the Department for Promotion of Industrial & Internal Trade, Ministry of Commerce & Industry vide its communication dated August 3, 2020, for the expansion of licensed manufacturing capacity at its existing manufacturing facilities located at Panelav (Gujarat).

Axis Bank: The bank has set a floor price of Rs 442.19 per equity share for qualified institutional placement (QIP).