Index trend and stocks in action on August 11, 2020
Nifty opened Monday’s session with a gap-up and extended its early gains. Just when things looked good, the index resisted near about the prior swing high and saw a sudden bout of selling pressure. This selling pressure dragged Nifty towards its 20-HMA. In the end, Nifty closed at 11,270 with gains of 0.50 per cent.
The price action formed a Gravestone Doji pattern exactly at the prior swing high. This resulted in the formation of an indecisive candle for the fourth session in a row and at times, such formations lead to a swift fall if this cluster of indecisive candles is not crossed immediately. Nifty now has rallied 50 per cent from its March lows and currently, it is seen resisting around 78.6 per cent of the downfall (February to March) along with the trendline resistance, which is formed by adjoining the lows made in October 2018 and August 2019.
As long as the resistance zone of 11,340-11,380 is not cleared convincingly, do not expect a run-away rise. On the downside, the level of 11,230 is likely to act as an immediate support level, followed by 11,120 levels.
Even though the index is moving higher, the formation of multiple indecisive candles is clearly indicating a loss of buying interest at higher levels. Keep strict stop-loss for long positions and be bearish only below the close of 11,120 levels.
Cupid: The company has received USFDA 510(k) approval for additional four variants of CUPID brand male natural rubber latex condoms in addition to approval for one variant already obtained by the company, to market these products in the US market.
Titan: The company has incorporated a wholly-owned subsidiary with the name, Titan Commodity Trading Limited.
Suven Pharmaceuticals: A meeting of the board of directors of the company to be held on August 17 to consider the issue of bonus shares.
Gufic Biosciences: Remdesivir will be manufactured in the state-of-the-art Lyophilisation facility of GLPL situated at Navsari, Gujarat and the said facility has been approved by EU-GMP, WHO-GMP, Ukraine GMP, South African Authority, ANVISA, Brazil and many other countries. Gufic Lifesciences Private Limited (GLPL) has already received a manufacturing license for the said formulation from the drug authorities in India and has also initiated supplies in countries like Kazakhstan, Philippines, UAE, and Indonesia, etc.
BLS International Services: BLS International Services Limited in an exclusive strategic alliance with Al-Wafi, Governmental Services Corporation has been awarded a contract by the Ministry of Foreign Affairs, Government of Egypt for the legalisation of documents for the Egyptians living in the diaspora.
Kotak Mahindra Bank: The bank has informed that it has achieved compliance with the promoter shareholding reduction requirement set out in Reserve Bank of India’s letter dated January 29, 2020, and February 18, 2020, within the timeline prescribed by RBI.