Index trend and stocks in action on July 24, 2020

As the saying goes, ‘the comeback is always stronger than the setback’, this is what we had witnessed on the D-Street on Wednesday.

The market participants got a feeling as if everything is falling apart as the bulls snapped their five-day winning streak and were seen losing control. However, on Thursday, the bulls were back in action, driving Nifty past yet another landmark of 11,200. The broad-based rally was spearheaded by the blue-eyed boy of D-Street i.e. Reliance Industries and aided by pharma and banking stocks.

The price action formed a bullish candle, following a hanging man formation in the prior session. If we closely look into the formation of the last two trading sessions, the recent bar looks like an inside bar but again, it’s not a perfect textbook inside the bar. Further, it has almost filled the opening downside gap, which was created on March 6, 2020 (11,244-11,035) and along with this; it has also reached the upper Bollinger band.

Going ahead, the high and the low of Thursday are the two price points to be closely monitored by the traders on Friday, as a breach on either side is likely to give some trending move. Hence, on the upside, the level of 11,240 is likely to act as a stiff resistance and on the downside, the level of 11,103 may act as a support.

At the current juncture, the risk-reward is not favourable for the long positions. Hence, the traders are advised not to take an aggressive long position. It’s better to be in control of the risk as it stays elevated at the current level for the long positions. For day trading, follow the levels mentioned and trade accordingly.

Sun Pharmaceutical: Taro Pharmaceutical Industries announced that its wholly-owned subsidiary, Taro Pharmaceuticals USA, Inc. has resolved all cases involving the company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division into the US generic pharmaceutical industry.

Majesco: Majesco announces new and innovative updates for Majesco Billing for P&C.

PNC Infratech: The company received LOA from NHAI for two EPC Projects of Delhi - Vadodara alignment of eight-lane access-controlled Greenfield Expressway for an aggregate contract value of Rs 1,547.80 crore.

Kingfa Science & Technology: The company has started the manufacturing of masks, in addition to the existing business activities of the company at its Chakan (Maharashtra) plant.

Voltas: Voltas brings in the festive season with its special offer for Onam. The consumers are set to get benefits up to Rs 20,000 on the purchase of Voltas or Voltas Beko products.

Lupin: Lupin receives tentative approval for Empagliflozin and Linagliptin tablets.