Index trend and stocks in action on June 25, 2020

Nifty50 index opened the session on a positive note and as anticipated in earlier write-up, it faced resistance around 10,551 mark and thereafter, it came tumbling down and ended near the day’s low. Nifty settled 1.58 per cent lower and snapped the four-day winning streak. Around 39 stocks of Nifty50 stocks ended in red.

The price action for the day formed a bearish outside bar and in technical parlance it is known as bearish engulfing pattern. The engulfing pattern visually shows how the opposing forces had gained control of the market. The formation of bearish engulfing pattern at 61.8 per cent of the downfall of January-March and near 200-EMA, is a clear-cut cautious sign for the bulls. 

However, like Monday's Doji bar negated, this bearish engulfing may or may not get the confirmation on Thursday. Hence, traders would monitor the price action of Thursday’s session. Moreover, Thursday being the expiry of the current derivative series, the rollovers and profit bookings will dominate the market. Hence, expect some volatility as well.

Going ahead, the level of 10,277 is likely to act as an immediate support level and any move below this level could result in another round of selling. In that case, Nifty may slip towards 10,140 levels. On the upside, the level of 10,430, followed by 10,550 level is likely to act as a stiff resistance.

Overall, expect a volatile session. The level of 10,277 is placed as an immediate support, followed by 10,140 levels, which would act as a crucial support.

Asian Granito India: Asian Granite India Ltd has launched Atmanirbhar Programme to revive retail and secondary sales aimed at reducing marketing cost and increase profitability while, generating employment opportunities in the current slowdown period. Pilot project is launched in Gujarat and the company aims to launch this pan India in the coming time.

TCS: TCS helps Zebra Technologies deploy a unified platform to enrich partner experience.

Bharti Infratel: The board of directors extended the deadline for merger with Indus Tower to August 31.

Andhra Paper: Promoter International Paper Investments (Luxembourg) SARL proposes to sell 10 per cent shareholding in company via offer for sale on June 25-26, with an option to sell additional 7.2 per cent stake.