Index trend and stocks in action on August 06, 2020

Nifty opened the session on a positive note and in no time, it crossed 11,200-mark. It made a high of 11,225.65 and just when everything looked good, a sudden bout of selling pressure knocked the wind out of the bulls and Nifty was trading at intraday lows. After some volatility, Nifty finally shut the door with mild gains.

The price action of the day formed a small bearish body candle with wicks on either side. This pattern resembles a spinning top pattern. Further, Nifty faced resistance at the rising wedge support line.

Going ahead, the level of 11,064 is likely to act as immediate support for the index and if the index slips below this level, it can witness further selling pressure. In that case, the target placed at 10,994 would act as key support as its 20-DMA moved higher.

Technically, the indicator set up did not witness any major change in the last two days. The previous day's bull strength too looked exhausted. At the same time, there is no clear bearish sign.

On the upside, if Nifty moves above Wednesday's high of 11,225, we may witness convincing bullish strength. The focus would be on the RBI’s policy outcome, which would dictate the future course of action. Hence, keep an eye on 11,064 and 11,225 levels as a break on either side would open up for a directional move.  

Alkem Laboratories: The company has launched Favipiravir in India under the brand name ‘Alfluenza’ for the treatment of mild to moderate COVID-19. Favipiravir has received authorisation from Drug Controller General of India (DCGI) for restricted emergency use in India.

Vivimed Labs: The company announced the manufacturing of ‘Favulous’ tablets 200 mg (Favipiravir) against export orders. The initial export order value is worth over Rs 10 crore and the company is expected to receive further repeat orders during the year.

Wipro: The company announced that it has been positioned as a leader in Gartner's Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, Asia Pacific.

Bharti Airtel: The company announced a multi-year, strategic collaboration agreement (SCA) with Amazon Web Services (AWS) in order to deliver a comprehensive set of innovative cloud solutions to large, small, and medium enterprise (SME) customers in India.