Index trend and stocks in action on June 19, 2020

The bulls roared on D-Street and surprised everyone with a scintillating rally as Nifty surged over 2 per cent and ended comfortably above 10,000 mark at 10,092. Interestingly, both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net buyers on Thursday and the market breadth was in favour of advancers.

The price action formed a sizable bull candle, which has resulted into a breakout of tight range and usually this kind of tight range breakout are violent in nature. Hence, we saw Nifty registering its biggest single day gain after June 1.

Nifty has reached near its crucial resistance level as defined by the falling 100-DMA. Earlier, on two instances, Nifty has resisted at 100-DMA. Firstly on June 8, when Nifty formed ‘open is equal to high’ and on June 9, when it formed a bear candle with an upper tail near 100-DMA.

Going ahead, a follow through move is important for the index and once the 100-DMA is crossed, the bulls’ mood will cheer up and Nifty can be on its way to reclaim 10,300-10,350 levels. On the downside, the level of 9,980-9,990 is likely to act as an immediate support, followed by the level of 9,775, where 20-DMA is placed.

Overall, traders are advised to be on the bullish side as long as 20-DMA is defended by the bulls and maintain a ‘buy on dips’ stance.

Tata Motors: Moody’s Investor Service has downgraded the credit rating of the company.

HCL Technologies: HCL Technologies take precision marketing at scale to the next level with the new Unica platform.

Cipla: Cipla expands partnership with Roche Pharma India to further improve access to key oncology medicines.

Reliance Industries: Saudi Arabia’s Public Investment Fund (PIF) to invest Rs 11,367 crore in Jio Platforms.