Index trend and stocks in action February 24, 2016

The Indian market opened the trading session with marginal gains and started to display weakness soon after opening. The selling pressure continued for the entire trading session and there were no attempts for recovery seen in Tuesday’s trading session. In the end market ended with losses of over 1 per cent and tad above 7100 mark. In the past couple of sessions it was clearly evident that the market was facing a strong supply in the zone of 7240-7250 and the level of 7235 was 50 per cent retracement level of the down move from high of 7600.45 to a low of 6869. On Tuesday, the index made an attempt to cross this hurdle; however, after registering high of 7241.70 it witnessed a sharp correction. On the daily chart the index has formed a long bearish candlestick pattern, which resembles Bearish Engulfing Candlestick pattern, which indicates the dominance of bear’s. Hence, weakness is likely to continue in the market in the coming trading session. Now going forward the index will face resistance around levels of 7150-7170. On the downside, immediate support is placed around 7040 and next major support is placed around 6960

Maruti Suzuki: Country’s largest carmaker Maruti Suzuki resumed production at its two manufacturing facilities in Haryana after two days of suspension as component supplies were hit by agitation of the Jat community demanding job reservation.

IDBI Bank: Domestic rating agency ICRA downgraded the credit rating of state-run IDBI bank on concerns over increasing bad loans, which led to an immense Rs 2,183 crore loss in the December quarter.

Tata Motors: About 300 workers of Tata Motors working in the Sanand plat have gone on flash strike to press for reinstatement of around 20 of their colleagues who have been suspended for serious misconduct.

Spice Jet and Jet Airways: Spice Jet and Jet Airways started their pre-summer season discount sale. Jet, which is a full-service carrier, is offering special discount up to 30 per cent and Spice Jet has decided to reduce base fares to as low as Rs 599 for a one way journey.

Kotak Mahindra Bank: Kotak Mahindra has signed a share subscription and shareholder’s agreement with Bharti Airtel and its 100 per cent subsidiary Airtel M commerce service to buy 19.9 per cent stake in the latter for Rs 98.38 crore.

PNB: State-owned Punjab National Bank has declared a list of 904 wilful defaulters, including Winsome Diamonds & Jewellery and Zoom Developers that owe about 11,000 crore to the bank.

NCC: NCC and Soma Enterprise are selling their entire stake in Bangalore Elevated Tollway for Rs 750 crore to a fund operated by IDFC Alternative.

Dabur: The Company has decided to produce two Ayurvedic drugs one for management of diabetes and another for cure of malaria.