Index trend and stocks in action on July 17, 2020
Nifty opened with an upside gap and traded within the range of the first 15-minute candle during the majority part of the day.
However, in the last hour of the trade, the index gave a range breakout and witnessed an upside momentum. At the end of the day, Nifty ended with a gain of almost 122 points or 1.15 per cent. The price action has formed an inside bar candlestick pattern on the daily timeframe.
Interestingly, since the last three trading sessions, the 20-DMA is acting as strong support and the index has formed almost three identical lows near 20-DMA. Also, on the lower timeframe, i.e. 60 minutes, the index has formed Adam & Adam double bottom pattern. Furthermore, the RSI on the 60-minute time frame turned upside exactly from the 40 level, which suggests a bullish momentum as per RSI range shift rules.
Going ahead, the index needs to sustain above the zone of 10,795-10,830 for further bullish momentum as it is the confluence of the neckline of double bottom pattern and downward sloping trendline resistance.
On the downside, the zone of 10,570-10,540 is likely to act as strong support as 20-DMA and 50 per cent retracement level of its prior upward rally (10,194.50-10,894.05) placed in this region. In the coming session, we expect the index to consolidate in the broad range of 10,540-10,830 and a decisive breach on either side may result in a trending move.
L&T Technology Services : The company has acquired 100 per cent stake in USA-based Orchestra Technology, which is a specialist technology solutions provider for the telecom industry.
Thomas Cook (India) : The company has announced that it has signed an agreement with dnata Travel to operate as the travel management company (TMC) to service dnata’s customers as it closes its TMC operation in India.
Sagar Production : The board has approved a merger with Epuja Web Solutions Private Limited.
PNB Gilts: CRISIL re-affirmed its credit rating of A1+ as assigned to Rs 1,000 crore commercial paper programme of the company.
Oriental Carbon & Chemicals: ICRA re-affirmed its long-term ration on the company at AA- with a stable outlook.