Index trend and stocks in action on September 08, 2020

Defying weak global cues, Nifty opened the session with a flat to positive bias. However, it just turned out to be a formality as soon after opening, Nifty came under selling pressure and the line of control i.e. 11,300 levels, which was closely monitored by the bulls, was pierced by the bears in the initial hour of the trade itself. Thereafter, Nifty went on to make a low of 11,251.70.

After registering the intraday low of 11,251.70, Nifty traded sideways for the majority part of the session and the bulls, which gave the impression that they have lost the battle, reclaimed the 11,300 mark. Besides, during the last leg of the trade, they finished in style as they closed with a net gain of 0.19 above the 11,350 mark.

The price action of the day has formed a candle, which resembles a ‘Dragonfly Doji’. However, the key important takeaway from Monday's session was that the aggressive selling was missing post initial hour onslaught and despite bouncing off strongly from the day’s low, Nifty failed to close above the 21-day EMA, which was a line of support for the bulls. So, now, this line of support is likely to change its role and act as a resistance. In technical parlance, it’s called a change in polarity. Hence, the region of 11,373-11,452 is likely to act as a stiff resistance zone for the index as it is a confluence of 21-day EMA and the trendline resistance on 60-mins, which is formed by connecting lows of August 14 and 31.

So overall, in the coming days, the range of 11,250-11,450 is crucial to watch out and a decisive breakout on either side would give us a trending move.

Wipro: Wipro & Marelli announced that they have entered into a multi-year global agreement for automotive engineering services. Marelli is one of the world’s leading global independent suppliers to the automotive sector with operational headquarters in Saitama (Japan) and Corbetta (Italy).

Dr Reddy’s Laboratories: Dr Reddy's Laboratories announces the launch of Fulvestrant injection, 250 mg/5 ml (50 mg/ml) per single-dose syringe in the US market.

Dhanuka Agritech: Dhanuka Agritech Limited launches two powerful fungicides for grapes against downy and powdery mildew in India.