Nifty trend and stocks in action on September 29, 2020

Nifty experienced ‘Marvelous Monday’ as it recorded gains for the second consecutive day and reclaimed its important psychological mark of 11,200. Nifty opened the session with an opening upside gap and the gap remained unfilled as Nifty carried the momentum throughout the day and ended near the top range of the day.

The price action of the day formed a bullish candle, carrying higher high and higher low as compared to the prior bar. Nifty has recovered almost 435 points from Thursday’s low and managed to retrace more than 50 per cent of the current down leg. The index is now within the striking distance from its resistance zone. As multiple resistance points are placed in the region of 11,236-11,302, the 50-DMA (11,302) and the 61.8 per cent retracement of the recent down move is placed at the same level. Also, the 21-DEMA and Kaufman's adaptive moving average (KAMA) is placed around 11,249 and 11,236. Hence, the opening and price trajectory thereafter would be important for the monitor.

If the index opens flat and fails to cross above the immediate resistance level of 11,236-11,249, we could see the index move into a sideways action, where the level of 11,170 is likely to act as immediate support. However, sustaining above the level of 11,249 means it would extend the current upmove towards the mark of 11,302. This is the point where it might halt its current pullback.

Overall, the range of 11,236-11,302 is a big hurdle for the index in the near term and thus, aggressive longs at the current juncture might not be prudent.

Chembond Chemicals: Chembond Water Technologies Limited, a wholly-owned subsidiary of the company has been recognised by the independent global research agency Frost & Sullivan as the ‘2020 Indian water chemicals company of the year’.

Cosmo Films: Cosmo Films launches a BOPP-fragranced packaging film.

Lupin: Lupin announced the launch of Fosaprepitant for injection, 150 mg single-dose vial, having received approval from United States Food & Drug Administration (USFDA) earlier.