Index trend and stocks in action on June 29, 2020

In the last week, Nifty halted its furious rally around 61.8 per cent retracement level and ended the week with gains of 1.35 per cent. The broader market outperformed with Nifty Mid-cap and Small-cap advancing 2.81 per cent and 2.88 per cent, respectively.

Nifty started the last week with a doji candle and interestingly, ended the week with an indecisive candle doji. On the weekly timeframe, Nifty ended above 200-EMA, however, the formation of ‘spinning top’ pattern around 61.8 per cent retracement is giving a warning sign that the market is losing its momentum. Formation of this pattern especially after a steep advance could be a signal that the bulls are having trouble in continuing their ascent.

Going ahead, the immediate resistance for Nifty is placed at 10,410 levels and sustaining above this level, may take Nifty towards the levels of 10,550. On the downside, 10,270 is an important support followed by 10,168. We expect Nifty to trade in the range of 10,160-10,550. A clear trending move is expected on close above 10,550 and in that case, Nifty may head towards 10,700-10,750 levels on the upside, whereas, on the downside, breach of 10,168 could lead towards 10,000-9,929.

Overall, the formation of spinning top on weekly and doji on the daily timeframe could be a cautionary signal that the prior move is stalling. The level of 10,550 is likely to act as big hurdle in the short-term.   

Phoenix Mills: The board of the company is set to consider fundraising proposal at their meeting, scheduled to be held on June 29.

SAIL: The board meeting of the company has been postponed, which was scheduled to take place on June 30.

BHEL: CARE has downgraded the rating on the long-term bank facilities of the company to ‘CARE AA’ from ‘CARE AA+’ while, reaffirming the outlook to ‘stable’.