Index Trend and Stocks in action October 30, 2015

There has been no respite for the bulls as the Indian markets continued to witness selling pressure for the fourth-consecutive trading session.  On the daily chart the index formed a double top around the levels of 8320-8340. After registering double top the nifty has witnessed correction of about 200 points and is approaching towards its crucial support zone of 8065-8050. Going forward the zone of 8050-8065 would be the last hope for the bulls, if it manages to sustain above this support zone expect a pullback rally or else more weakness in the short term. If the level of 8050-8065 is breached it will open gates for correction up to levels of 7800 in the short term. In day trading major resistance for the index is placed at level of 8160 and immediate support is placed around levels of 8080. The overall trend for the Nifty index looks weak and the long term reversal could be seen only if the index manages to close above 8350 level on a weekly basis.

HCL technologies Ltd: HCL Technologies has acquired Power Objects, a US-based provider of Microsoft Dynamics customer resource management solution, for USD 46 million, or about Rs 299 crore, to bolster its offerings in the applications development space

STFC: Shriram Transport Finance reported 12 per cent growth in net profit for the quarter ended September 30. It posted a standalone net profit of Rs 338 crore compared with Rs 302 crore reported for the year-ago period.

Emami: FMCG firm Emami reported 32.97 per cent decline in consolidated net profit at Rs 61.34 crore for the second quarter ended September 30, 2015 on account of amortisation of Kesh King intangibles.

Cipla: Drug maker Cipla said it would sell its 25 per cent stake in Boimab Holding, a Hong Kong company that make bio-similar durgs for the Chinese market, for nearly USD 26 million.

Nestle India: Swiss packaged food maker Nestle saw its profit taking a hit by 60 per cent as the absence of its most profitable product, Maggi, continued to remain off the shelves. Even sales fell by 32 per cent to Rs 1736 crore on a comparable basis. The drop in revenues and profit were much sharper than expected. The company also had to shed out cost for an exceptional cost of Rs 25 crore pertaining to withdrawal of stock from the market.

ITC, LT and ICICI Bank: FMCG major ITC will be in limelight as it will announce its quarterly result today. LT and ICICI Bank will also announce their quarterly result today.