Index trend and stocks in action on June 17, 2020

What looked like a merry day for the index at the beginning of the day, turned out to be a turbulent day as the news of India-China border face-off spooked traders and Nifty registered low of 9,728.50. However, the index recovered in the last leg of the trade and Nifty eventually, ended the day with gains of 100 points at 9,914.

The price action of the day formed a small red body with a long lower shadow indicating an emergence of buying at the lower levels. Nifty opened the session above Friday’s high, however, it was not able to sustain above 10,000 mark even for an hour.

Nifty experienced a movement of almost 317 points on Tuesday, which was greater than 10-day average of 226. On the lower timeframe, Nifty is moving in a rising channel and now going ahead the level of 9,740, followed by 9,674, it’s likely to act as a strong support for the index.

One key observation in the last couple of trading sessions is that despite a high volatility, the bulls have been managing to defend its rising 20-DMA. Now only a closing below 20-DMA could possibly give strength to the bears.

Meanwhile, on the upside, the level of 9,980 followed by 10,040 is likely to act as a resistance level. Sustaining above this level, Nifty may test its 100-DMA.

Over the last seven trading sessions, the index is trading within the limit of 100 and 20-DMA. On the higher side, the 100-DMA is acting as a strong hurdle for the bulls and on the downside; the 20-DMA is acting as a strong support. Hence, breach on either side could lead to a strong directional move.

The daily MACD has given a negative crossover as MACD trades below its signal line. The RSI on the hourly time frame is trading in a rising channel.

HDFC Asset Management Company: Standard Life Investments, which is one of the promoter of the company is planning to sell up to 60 lakh shares (with an option to sell additionally 60 lakh shares) of the company via an offer for sale on June 17-18.

Wipro: Wipro and a leading provider of loan origination software solutions, announced a partnership with DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services for the mortgage industry. The partnership will enable Wipro Gallagher Solutions to advance digital mortgage processes via a seamless integration to DocMagic services.

HCL Technologies: HCL Technologies commences operations in Sri Lanka in order to leverage the country’s IT workforce.