Index trend and stocks in action on June 08, 2020
During the last week, bulls moved strongly as the indices extended gains for the second consecutive week. For the week, Nifty was up by 5.86 per cent and it closed above 10,100 mark. In the last two weeks, Nifty has rallied nearly 12 per cent and with this upward march, Nifty closed above its 50 per cent retracement level of the sharp fall from January to March.
On the weekly chart, Nifty has formed a sizable bullish candle with an upward gap and it has climbed past its 20-week EMA. On the daily timeframe, Nifty has entered territory of the gap area of March 12. This gap area is likely to act as a stiff resistance for the index in the near term. Once the gap of March 12 is filled by moving above 10,334, Nifty can head higher towards 61.8 per cent retracement level, which is placed at 10,551 levels.
As per the candlestick analysis and the short & medium-term moving averages, the trend of Nifty remains in favour of the bulls. However, since we are very close to a stiff resistance zone and the last three days’ price action, which was limited up to 232 points and forming an indecisive bar, clearly indicates that the strength of the bulls is waning as we are heading close to a resistance zone. Also, any trend needs to have a retracement and we would advise the traders to indulge in long positions during this retracement phase as this would offer a good risk to reward opportunities.
On the downside, the level of 9,940-10,000 is a key support and on the upside, the zone of 10,300-10,334 is likely to act as a resistance level.
Wipro: Wipro and IBM collaborate to help clients accelerate their cloud journeys.
Saregama: Saregama music library grows by 10 per cent.
Thyrocare Technologies: The company has clarified to news items published in a newspaper. It said that the testing reports have been issued after following rigorous quality testing procedures and it is in-line with the testing guidelines issued by Indian Council of Medical Research (ICMR) in India and also, adheres to the standards issued by World Health Organisation (WHO).
Reliance Industries: Reliance Industries and Jio Platforms announced an investment of Rs 5,683.50 crore by a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA).
Brigade Enterprises: Brigade Group re-opens its hotels from June 8, 2020.