Index trend and stocks in action February 12, 2016

It turned out to be a terrible Thursday for the Indian benchmark indices which crushed like a pack of cards and went on to close below the important psychological mark of 7000. On the daily chart the index has formed a long range bearish candlestick or we can define it as a ‘Bearish Marubozu’; this candlestick indicates sellers were aggressive. On the daily chart the index has filled the gap which was created on 13th of May, 2014. Now going forward important support for the index is placed around levels of 6860 and next support is placed around 6780. On the upside, levels of 7035 will act as a stiff resistance and if the index trades above this resistance level along with volumes it’s likely to re-test levels of 7100. The daily 14-day RSI is quoting around 27 levels and the RSI is likely to touch lower levels of 22-23.

Tata Motors: Largest manufacturer in Indian Automotive industry Tata Motors has seen a dip of 2 per cent in net profit to Rs 3507 crore. The EBITDA of JLR fell by 24 per cent but the fall in sales in China was largely compensated by better sales in the UK, Europe and North America. Revenues for the quarter were up by 2.9 per cent at Rs 72,256 crore.

ONGC: State-owned Oil and Natural Gas  Corp (ONGC) reported 64 per cent lower profit for the quarter ending December, 2015 at Rs 1286 crore, largely hit by weak oil prices globally. This was a second straight quarterly decline.

Aurobindo Pharma: The Pharma major has informed that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Levofloxacin injection, an anti-infective used in the treatment of bacterial infection in adults.

Reliance Capital: Nippon Life Insurance has secured CCI approval for hiking its stake in Reliance Life Insurance to 49 per cent. This is the maximum allowed under the revised FDI norms that are currently applicable.

SBI: State Bank of India, the nation’s top lender by assets reported a 62 per cent fall in the profits on high provisions and slippages of Rs 20,692 crore. This is nearly 3.5 times the provision made by SBI in the previous quarter. The Net Interest Income (NII) declined 1.2 per cent to Rs 13,606 crore compared to a year ago period.

Rajesh export: Rajesh export net profit grew by 76.74 per cent to Rs 302.68 crore in Q3FY16 as compared to Rs 171.25 crore during the corresponding quarter of the last year. Topline grew by 300.72 per cent of Rs 49,819.13 crore as compared to Rs 12,432.43 crore during the same quarter of the last year. The order book position as on December 31, 2015 was Rs 28,829 crore. These orders are to be completed within April 30, 2016.