Index Trend And Stocks In Action December 31, 2015

Indian equity markets marked an optimistic start, however, as the day progressed the indices suffered setback as impulsive stints of profit taking tendemcy emerged and this dragged the Nifty index below crucial 7900 mark. After the formation of a reversal candlestick pattern, i.e. classical doji the index has now formed a bearish candlestick pattern which indicates bears are back in action. Now going forward, as long index stays below the recent high level of 7944, the index will remain under pressure and bears will have an upper hand. On the downside level, 7850 will act as a crucial support for the index as its 38.2 per cent retracement of the previous down move from the swing high level of 8336 to 7551. On the upside level of 7945-50 will act as a stiff resistance. The daily 14-day RSI was not able to touch levels of 60 as it reversed from 57 levels. We expect Thursday’s trading session to be a volatile one with a negative bias. 

GIC Housing Finance: GIC Housing Finance has approved the proposal to acquire up to 16 per cent stake in LIC Nomura Mutual Fund Asset Management Company for Rs 22.68 crore.

Prakash Steelage: Prakash Steelage plans to split its equity shares of face value Rs 10 each to Re 1 each. The company has completed JV agreement with Tubacex SA Spain for acquisition of a majority 67.5 per cent stake in its seamless stainless steel tubes division.

Amtek Auto: Amtek Auto has pledged its entire stake of 71 per cent in Group firm JMT Auto with IL&FS Trust Company.

Essar Oil: Finally, Essar Oil completed the delisting of the company valued at Rs 38,000 crore by paying Rs 3,745 crore to shareholders. The promoters offered a price of Rs 262.8 per share for the buyback, making it the biggest delisting payout in India.

Jet Airways, Godrej Consumer Products: NSE will introduce four companies from January 1, 2016. Jet Airways, Godrej Consumer Products, Container Corporation and Torrent Pharma would also be the part of the derivative segment from Friday.