Index trend and stocks in action on June 03, 2020

The bulls continued to maintain their firm grip on the markets as the benchmark indices logged gains for the fifth consecutive session and recorded its best closing since March 13. At close, Nifty settled at 9,979, up by 153 points. Meanwhile, 36 stocks of Nifty50 ended in green.

With almost 11 per cent rally from the lows of May 27, Nifty has ventured into a hurdle zone of 9,970-10,000. Why this is a big hurdle? Firstly, the 50 per cent retracement level of a major decline from February 2020 to March 2020 is placed at 9,970 and secondly, 10,000-mark is a big round, hence, the roundophobia factor comes into play. David Fuller defined roundophobia as ‘the tendency of markets to at least pause in the region of round numbers’.  Hence, it’s important for the index to sustain above this level in the coming trading session for further upmove.

As the index is making higher high and higher low, the trend is bullish and only closing below prior bar low, which stands at 9,824, may give us an indication of some consolidation or correction in the index. As long as Nifty is above 9,824 levels be with bullish bias and adopt ‘buy on the dips’ strategy, which is to take advantage of a pullback or temporarily lower prices, in order to purchase stocks or other investments in a market that is rising.

Majesco: The company announced that the long-time customer, Multinational Insurance Company completed its upgradation of Majesco Policy for P&C from an older version on-premise to the newest version on Majesco CloudInsurer for their commercial lines operation.

ICICIGI: ICICI Lombard simplifies claim process for customers affected by Cyclone Amphan.

Lupin: Lupin receives approval for Meloxicam capsules from USFDA.

Quess Corp: The company has completed the additional acquisition of 25 per cent equity shares in Terrier Security Services (India) Private Limited (TSSIPL), an associate company of Quess Corp Limited from Heptagon Technologies Private Limited, another associate of Quess.

Syngene: Syngene ties up with HiMedia Laboratories to manufacture ELISA test kits for COVID-19.