Index trend and stocks in action on August 14, 2020
Thursday’s session was the seventh successive session in a row, where the index formed an indecisive bar.
The market opened with positive bias but repeated the same what’s already going on for a while now. For almost a week, the market opens higher and after an initial upward stride, it slips from the top to end the session almost near to open or below the open.
Moreover, in the last four trading sessions, the index has been trading in a narrow range of 11,238-11,373. Multiple attempts have been made to cross the hurdle of 11,340-11,380 but in vain. So, for the immediate near-term, the range of 11,238-11,373 is a crucial range to watch out for. Further, Bollinger band on the lower timeframe i.e. 60 minutes has contracted and this has led to a formation of a squeeze. Hence, traders should wait for a break of the range on either side for the next trending move. As long as Nifty oscillates in this narrow range, there are no clear trading opportunities available for the day traders in the index.
On the downside, a breach of 11,238 levels would open the gates for a further correction towards the zone of 11,157-11,128. This zone is the next important support zone as this a confluence of 20-DMA and 50 per cent retracement level of the recent upswing.
On the upside, a close above 11,380 would result in a fresh breakout and it may take the index towards the levels of 11,500-11,600 in the near term.
We would advise the traders to wait for a resolute break of the range and create a position accordingly because once we see a break of this range; the move is going to be fast and ferocious in nature.
Ahluwalia Contracts: Ahluwalia Contracts has secured a new order aggregating to Rs 290 crore (approx.) for the construction of a new building of Pt Jawaharlal Medical College and Hospital, Chamba (Himachal Pradesh) awarded from NBCC (India) Ltd.
Jindal Steel and Power: India's one and only 1080 head hardened rail manufacturer Jindal Steel & Power (JSPL) has started the supply of 1080 grade head hardened rails to Rail Vikas Nigam Limited (RVNL) for the completion of Kolkata Metro's Joka-Esplanade corridor.
Bank of India: The board of directors of the bank approved the raising of capital, aggregating up to Rs 8,000 crore.