Index trend and stocks in action on July 02, 2020

Nifty remained in northward trajectory for the majority of the session and as a result, it moved out from its four-day consolidation zone and ended the day above 10,400 mark.

The price action of the day formed a bullish candle with a higher high and lower low. Though Nifty has broken out of the four-day trading, the movement after the breakout is a concern. Usually, after the consolidation breakout, what we see is a swift move in the direction of the breakout but in this case, the swift move was missing. After the breakout, we have seen the formation of an indecisive bar on the lower time frame, so this raises some suspicion about the breakout. Hence, we would advise the traders to be cautiously positive and stay light on position.

Going ahead, a follow-through above 10,450 level would give more confidence to the bullish side and in case Nifty sustains above this level for at least half an hour, there is a high probability that Nifty may test its swing high of 10,553. On the downside, the zone of 10,260-10,280 is a strong support zone for the index.

Volatility could be seen on the account of the weekly expiry. However, as long as the zone of 10,260-10,280 is protected, be with the bullish bias.

MPS: MPS Limited completes the acquisition of HighWire Press to accelerate platform business.

NLC India: The company reported a fire accident in unit 5 of Thermal power station-2.

Coal India: The company reported a drop of 12.8 per cent YoY in coal production in June.

Polycab: The company has incorporated a wholly-owned subsidiary in Australia under the name and style of ‘Polycab Australia PTY Ltd’ on July 1, 2020.

India Cements: As per the updates by the company in its recent disclosure filing with exchanges, the company has disclosed that it has availed the first moratorium offered by Reserve Bank of India and has requested its lenders to extend the second moratorium, as per the recent guidelines issued by RBI. The company’s ability to service its debt obligations and meet other financial commitments is adequate. The company is in the process of conserving its cash resources in the best possible way in order to maintain its liquidity position.