Index trend and stocks in action on June 15, 2020

It was a roller coaster ride for the markets during the last week, as Nifty swung almost 784 points and finally settled with a loss of 1.67 per cent for the week.

The price action for the week formed a hanging man like candlestick pattern. Interestingly, Nifty, during the last week, had opened an equal to high formation while, on the last trading session of the week, had opened equal to low.

Now let’s dig in deeper. What exactly was the key takeaway of Friday’s session? Firstly, Nifty took support near about the rising 20-DMA and secondly, it filled the gap which was created on June 1 and lastly and most importantly, May 13 was a bearish belt hold formation with open=high at 9,584.50 and on Friday, it took support within this vicinity. So going ahead, Friday’s low of 9,544 would be crucial to watch out in the coming week. On the upside, a follow through move above Friday’s high could take the index towards the levels of 10,120-10,150.

The key level to watch on the downside is 9,544 and on the upside, it’s 9,996.  For Monday, we expect Nifty to trade sideways as on Friday, Nifty formed bar with a spread of 451 points, which is nearly two-fold the move of 10-day average, hence, a strong move of some sideways to choppy action is expected.  

Reliance Industries: Reliance Industries and Jio Platforms announced an investment of Rs 18,94.50 crore by L Catterton, one of the world’s largest consumer focussed private equity firms. Further, it announced that global alternative asset firm-TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. The investment will translate into a 0.93 per cent equity stake in Jio Platforms on a fully-diluted basis for TPG.

Tata Motors: The company signed an agreement to purchase the balance 50 per cent shareholding from the joint venture partner, Jayem Automotive Limited in JT Special Vehicles Private Limited (JTSV), consequent to which, JTSV will become a wholly-owned subsidiary of the company.

Dr Reddy’s Laboratories: Dr Reddy's Laboratories enters into a licensing agreement with Gilead Sciences for Remdesivir.

Sun Pharma: Sun Pharma presents Odomzo and Levulan Kerastick + BLU-U, offering clinical insights for treating people with or at risk of skin cancer.

Oil India: The company in its filing with exchanges has reported a blowout in gas well of Oil India at at Baghjan, Tinsukia district in Assam.

GMR Infrastructure: GMR Visakhapatnam International Airport Limited (GVIAL) signs a concession agreement (CA) for the development and operations of Bhogapuram Airport.

Cantabil Retail India: Cantabil Retail India Limited makes its debut in the e-commerce marketplace by launching Spring Summer (SS20) collection.