Index trend and stocks in action on June 22, 2020

For the initial part of the week, Nifty traded in a range and lacked clear direction. However, in the last couple of trading sessions, Nifty rallied nearly 3.5 per cent and as a result, it ended the week with gains of 2.72 per cent and above the mark of 10,200 after March 11.

The weekly price action formed a bullish candle with a lower shadow. However, the price stayed within the high-low range of the previous weekly range. So on a weekly time scale, Nifty has formed an inside bar. It has now crossed the barrier of 100-DMA for the first time after February.

Going ahead, the level of 10,325-10,350 is an immediate resistance for the index. Once this level is breached, there are high chances that Nifty may scale to its 61.8 per cent retracement level, which is placed at 10,551 levels and interestingly, the 200-EMA is also placed near the same level.

Currently, Nifty is trading in a rising channel as majority of the indicators are showing bullish strength. The RSI on the daily timeframe is trading in a bullish territory and the MACD has given a positive crossover. The directional momentum indicator is also showing strength in the trend as +DI is above –DI and ADX.

Traders are requested to initiate bearish position only while closing below the channel support. Besides, as long as the weekly low is protected on a closing basis, the upward bias is likely to remain intact.

Cipla: Cipla launches Cipremi (remdesivir lyophilised powder for injection-100 mg), the only USFDA-approved emergency use authorisation (EUA) treatment for patients with severe COVID-19 disease.

HDFC Bank: The board of directors has approved the issue of perpetual debt instruments (PDI) as part of additional tier I capital, tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore in the period of next twelve months through private placement mode.

PEL: Piramal Pharma Solutions announces the acquisition of solid oral dosage drug product facility in Sellersville (Pennsylvania) from G&W Laboratories Inc.

HDFC: HDFC board approves fundraising of up to Rs 14,000 crore.

Glenmark: Glenmark becomes the first pharmaceutical company in India to receive a regulatory approval for oral antiviral Favipiravir for the treatment of mild to moderate COVID-19.