Index trend and stocks in action on July 13, 2020

Last week, the price action resembled a ping-pong game; the balls were passed back and forth between the range. As a result, Nifty moved in a narrow range of 171 points but it continued to move higher for the fourth straight week in a row. For the week, Nifty added 1.51 per cent.

The price action on the weekly timeframe formed a spinning top like candlestick pattern while on the daily chart, Nifty formed a Doji candle as the opening and closing level was almost similar. For the week, the price range of the week was between 10,676.55 and 10,847.85.

If we check the last five trading sessions’ highs, they were marked as followed 10,811.40, 10,813.80, 10,847.85, 10,836.85 and 10,819.40. So from the above-mentioned levels, it is clear that Nifty is having a tough time to cross above these levels convincingly. Furthermore, Nifty seems to have found resistance in the zone of 10,827-10,884, which is a confluence of the weekly bearish gap and the long-term 200-DMA.

Hence, in case Nifty moves decisively above the level of 10,884, Nifty shall swiftly move towards the level of 11,000. While on the other hand, if it closes below 10,670 level, then it will initially fall towards the level of 10,550, followed by 10,480.

Traders are advised to wait for the resolute breakout of the range and take trade in the direction of the breakout i.e. if Nifty slips below 10,670 then, they can initiate a short, but in case if it moves above 10,884, then long trades. Till then, focus on the stock-specific action as the trading range is narrow to trade in the index.

Infosys: The company announced a strategic partnership between Old National Bank and Infosys Forge Digital Transformation Partnership, which aims to leverage Infosys’ expertise to accelerate Old National Bank’s growth and streamline operating models.

Reliance Industries: Qualcomm Ventures, the investment arm of Qualcomm Incorporated, an industry leader in wireless technologies, has committed to invest up to Rs 730 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

Biocon: Biocon’s breakthrough drug Itolizumab receives Drugs Controller General of India (DCGI) nod for its use in moderate to severe COVID-19 patients.

BASF: The board of directors of the company has approved the acquisition of 100 per cent stake by the company in BASF Performance Polyamides from BASF Nederland BV and BASF SE, for consideration of amount not exceeding Rs 305 crore.

Escorts: Competition Commission of India (CCI) has given a nod to acquire a little over nine per cent stake in Escorts by Kubota Corporation, and 40 per cent stake acquisition in Kubota Agricultural Machinery India by Escorts.

Clariant Chemicals: The company declared a special interim dividend of Rs 140 per share.