Index trend and stocks in action on July 21, 2020
Nifty kicked off the first trading session of the week on a buoyant note and soon, the bulls conquered the milestone of 11,000 mark and thereafter, the markets remained in a capped range throughout the session.
Nevertheless, some momentum was seen in the last hour of the trade, and finally, Nifty ended above 11,000 mark with a net gain of 1.11 per cent.
The price action formed a small body bullish candle with a lower shadow, which resembled a hanging man pattern. Nifty has formed a hanging man like candlestick pattern at the rising wedge resistance. Now going forward, let’s see whether hanging man candlestick pattern gets confirmation by closing below the prior bar low.
Going ahead, the level of 10,953 is likely to act as immediate support for the index, followed by the 200-DMA, which is placed at 10,867. On the upside, the daily bearish gap of March 6 (11,035-11,244) is likely to act as a strong resistance.
The volumes in future segments were very low. Besides, the volumes were seen declining in Nifty Future for the past three days.
Usually, uptrend on lower volumes indicates exhaustion. We would advise the traders to follow a strict trailing stop-loss for all the long positions.
Jubilant Life Sciences: Jubilant Life Sciences announces the approval of ‘Jubi-R’ (Remdesivir) in India for the treatment of COVID-19.
Interglobe Aviation: The company will need to bid a painful adieu to 10 per cent of its workforce to survive the disruption caused by COVID-19 pandemic.
Majesco: The board of directors of the company after considering the recommendations of the audit committee, approved the sale of the company’s entire stake/investment in the US subsidiary, pursuant to the merger & subjected to the approval of the shareholders of the company and other regulatory as well as statutory approvals, as may be required.
NTPC: Around 800 MW unit of Lara Super Thermal Power Project has been added to the installed capacity of NTPC.
Omaxe: Omaxe and JSPL signed an agreement for the supply of steel structures for Omaxe Chowk.