Index trend and stocks in action on August 19, 2020
After a long consolidation period, finally, Nifty broke its shackles and closed within a stone’s throw away from 11,400 mark.
The price action of the day formed a candle that resembles a white opening Marubozu and recorded the highest closing level since February 27, 2020. Nifty surpassed its previous swing high and moreover, for the first time, it closed above the 78.2 per cent retracement level of 11,377 after multiple attempts.
Further, the bull, which signed off the day near the day’s high, indicates that the bulls are in complete control. Now in the coming days, the bulls would attempt to bridge the bearish gap that was formed on February 28, 2020 (11,384-11,536). This gap is of high relevance as this was the first gap formed in reaction to the Coronavirus crisis. On the downside, the level of 11,310, followed by 11,250, is likely to act as an important support level.
The RSI has reached the downward channel resistance. And, when there is a strong breakout in the index, the trend strength indicator ADX is coming down. This kind of divergent strength is creating an element of doubt. There are no other negatives in the indicators. We would advise the traders to be with the trend as long it holds the supports and moves higher. Now the support has shifted towards 11,310-11,250 zone. Unless Nifty closes below these levels, continue the long positions with a trailing stop-loss.
Reliance Industries: Reliance Industries announced that its subsidiary Reliance Retail Ventures Limited (RRVL) has acquired a majority equity stake in Vitalic Health Pvt Ltd and its subsidiaries (collectively known as ‘Netmeds’) for a cash consideration of approximately Rs 620 crore.
IRB Infrastructure Developers: The company has now received a unanimous arbitral award of Rs 73.86 crore for one of its earlier projects in Punjab.
Indiabulls Real Estate: Indiabulls Real Estate and Embassy Group signed definitive merger documentation. The combination will create one of India’s leading real estate development platforms.
Jubilant Life Sciences: The company has issued commercial papers (CPs) of Rs 50 crore on August 18.
Dilip Buildcon (DBL): HCC-DBL (JV) has received a letter of acceptance (LOA) for a new project viz construction of tunnels, bridges, yard, and other formation works from chainage 117+365 To 125+320 (FLS) under package-9 in connection with new BG Line between Rishikesh and Karanprayag (125km) in state of Uttarakhand, India.
TCS: TCS announced the launch of TCS Safe Workplace, a return-to-work solution that helps global enterprises’ quick transition to a safe, secure, and productive work environment.
Wipro: Independent Research Firm identifies Wipro as one of the most significant providers of Digital Product Development Services.