Index trend and stocks in action on July 22, 2020

Nifty extended its northward journey for the fifth consecutive day on Tuesday. After opening the session with a gap-up, Nifty traded within a 66-point range throughout the day and ended the day above 11,150 mark.

The price action of the day formed a small body bullish candle with a gap-up and further, it has formed an NR7 bar, which is a bar that has a smaller range than the six bars before it.

Nifty has rallied just over 5 per cent from July 16, 2020. However, the daily range is contracting day by day; the gains are majorly due to runaway gaps.

Going ahead, the level of 11,180 is likely to act as immediate resistance and any move above this would result in a breakout of the channel. If Nifty sustains above this level, it may test the levels of 11,350-11,400 in the near term.

There are no signs of reversal on the charts but yes there are signs of exhaustion. As long as Nifty does not close below the prior bar low, be with a positive bias.

The trend strength is extremely high. The average directional index (ADX), which shows the trend strength, is as high as 31.54 on a daily chart and 41.55 on a 60-minutes chart. Generally, above 25 levels is considered as a strong trend. In both the timeframes, it is meeting the criteria. Also, the +DI is above –DI, which is a positive sign.

Sunteck Realty: In one of the biggest real estate deals post the lockdown, India’s leading luxury developer, Sunteck Realty Ltd has acquired a prime project of approximately 50 acres in the posh location of Vasai (West), having a development potential of approximately 4.5 mn sq.ft in the prime Mumbai Metropolitan Region (MMR).

BEML: The company has bagged an order for the supply of 1,512 mine plough for T-90 tanks from Ministry of Defence (MoD).

Wipro: Wipro Gallagher Solutions partners with EXOS Technologies to further simplify the digital mortgage journey for customers.

Info Edge: The company has entered into an agreement to invest up to Rs 10.6 crore through its wholly-owned subsidiary in Bizcrum Infotech Private Limited.