Index trend and stocks in action on August 21, 2020

Nifty opened the session with a gap-down and throughout the day, it traded in a range of 71 points to finally end the day at 11,312.20, down by 0.84 per cent.

The price action formed a Doji candle with a gap-down opening. With this, Nifty has been once again pushed back into the earlier consolidation range. One of the key observations during Thursday’s session for the bears is that after opening the gap session with a gap-down, Nifty attempted to move higher but throughout the day, it kept resisting around the 20-hour moving average. From the bulls’ perspective, the key takeaway from Thursday's session was that the bulls managed to defend the low of the bullish range breakout candle.

Hence, going ahead, on the upside, the immediate resistance is at 11,370, followed by 11,400. As long as Nifty stays below this level, do not create any aggressive long positions. On the other hand, the range of 11,200-11,250 is likely to act as immediate support for the index. A close below this level would open the gates for a further down move towards the level of 11,000-10,970.

Overall, the trend remains in the favour of bulls but with the recent price action, it suggests that the bears have put the foot in the door and the next level, which would be significant to watch out, is 11,200.

GMM Pfaudler: On the recommendations of the audit committee of the company, the board of directors approved the signing of definitive agreements in connection with the acquisition, by the company, of a majority shareholding (54 per cent) in the global business of Pfaudler Group. The company will acquire 34.4 per cent of Pfaudler Group by itself and 19.6 per cent of Pfaudler Group through its wholly-owned subsidiary, Mavag AG.

Greenlam Industries: The company has been adjudged as ‘the country’s largest exporter of decorative laminates’ by The Plastics Export Promotion Council for the financial year 2017-18 and 2018-19.

Hindalco Industries: Hindalco is set to supply 1.2 mn MT of red mud to UltraTech. Two flagship companies of Aditya Birla Group have joined hands to promote a circular economy.

TCS: TCS wins the 2020 Microsoft Canada IMPACT Award for Excellence in data centre migration.

Premier Explosives: The company has received an order from Israel Aerospace Industries Limited (IAI) for the development and supply of EDRM Rocket Motors for a total value of USD 520,000 (about Rs 3.90 crore).

Wipro: Wipro and Uniper collaborate to implement a blockchain-based small-scale liquefied natural gas (ssLNG) trading platform.