Index trend and stocks in action on July 03, 2020

Nifty remained upbeat for the second consecutive session and it settled the day at an almost four-month high. The price action of the day formed a small-bodied bullish candle with an upper shadow.

Nifty moved above the recent swing high of 10,553 and made a new swing high of 10,597. Further, it closed near its prior swing high of 10,552, which is a positive indication as this resulted in negation of bearish engulfing pattern found on June 24. Further, for the first time, it has managed to close above 200-EMA after February 25.

Currently, Nifty has managed to close right at the 61.8 per cent retracement level, which is known as ‘golden ratio’. Going ahead, the opening of today’s session and the price action thereafter would play an important role as Nifty managed to move above the prior session and remained there for about an hour. We expect the bullish movement to continue and Nifty may inch towards 10,750 levels in the near term.

Hence, the level of 10,600 would act as immediate resistance and on the downside, the level of 10,480 followed by 10,400, are likely to act as an important support zone.

Our advice for the traders is to follow the trend and as long as there is no clear sign of reversal, do not try to fight with the trend.

PTC India Financial Services: The leading bank of the country has sanctioned a term loan to the company- WC Augmentation (TLWC) of Rs 300 crore with a door-to-door tenure of three years, including a moratorium of six months, with sublimity of Rs 300 crore as an investment limit for CPs/NCDs/bonds within the overall TLWC limit.

Reliance Industries: The company has announced that Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

Cadila Healthcare: Zydus’ vaccine for COVID-19 (ZyCoV-D) successfully completes preclinical development and receives permission to initiate human clinical trials.

JB Chemicals & Pharmaceuticals: KKR & Co. Inc has agreed to acquire about 54 per cent stake in the company.

Motherson Sumi: The board of directors of Motherson Sumi Systems Ltd. (MSSL) at its meeting held today approved a group reorganisation plan with an objective of creating value for the shareholders of MSSL. The reorganisation realigns interest of all its stakeholders and creates a simplified corporate structure for the growth of businesses across product portfolios within auto components space and allied operations.

Hindustan Unilever: HUL's flagship skincare brand Fair & Lovely would now be known as Glow & Lovely.