Index trend and stocks in action January 20, 2016

After three consecutive sessions of losses, the Indian markets witnessed a dead cat bounce and ended with gains of over 1 per cent. Short covering in the banking stock, and positive trend across the Asian market aided the cause. On the daily chart, index has formed a Bullish Candlestick pattern; however, it has also formed a Tweezer Top pattern with the level of 7464 as a top. Now going forward, it’s important for the bulls to sustain above levels of 7464 for further momentum on the upside. If it does it’s likely to test levels of 7530-7550. On the downside levels of 7400 will act as a strong support zone, and below this level next important support is around 7330.

Reliance Industries: Reliance Industries third-quarter profit surged 10 per cent quarter-on-quarter to Rs 7,290 crore, benefited by fall in global crude oil prices. Gross refining margin jumped to a seven-year high at USD 11.50 a barrel in quarter ended December, 2015 showing an increase of 8.5 per cent compared to USD 10.6 a barrel in September quarter.

Reliance Power: Reliance Power reported stellar results showing a sharp 38 per cent increase in net profits and a 3-fold rise in power generation. This is likely to be positive for the stock.

Ashok Leyland: Hinduja's flagship Ashok Leyland Electric Vehicles' (EV) arm, Optare has taken up a project to increase the range of its Metro city and Solo buses to 200 miles without intrusion into passenger space.

Century ply boards: The Company has informed that it has acquired 51 per cent stake in a Singapore-registered trading company for Rs 1.07 crore. Century Plyboards in a disclosure to the exchanges said it planned to invest Rs 7 crore more in the company.