Index trend and stocks in action February 25, 2016

The meltdown in the Indian market sustained for one more session on account of pessimistic sentiment which prevailed across the Asian markets. The indices showed a glimpse of recovery in the mid-afternoon session, but the bulls failed to sustain at higher level due to lack of any encouraging leads from the European market. Eventually the Nifty index closed below the 7050 level with losses of more than 1 per cent. The ‘Bearish Engulfing’ like pattern which was formed on 23rd February, 2016, has been followed by bearish candlestick, so now this indicates the bear’s will continue to dominate in the coming session.  The index has formed a sequence of lower top lower bottom after registering a swing high of 7252, which was also a 50 per cent retracement level of the down move from levels of 7600 to 6869. Now going forward, the level of 6950 will act as an immediate support for the index and the major support is placed around 6820. On the upside, the zone of 7100-7130 will act as a firm resistance for the index.  The 14-day RSI has slipped underneath pivotal level of 40 and is prone to test levels of 28-30 which is the lower end of the reach. Markets are prone to be unpredictable on the eve of Rail budget and F&O expiry for February series. We recommend traders to play with strict stop losses.

IVRCL: Lenders have decided to convert part of their loans provide to debt-ridden IVRCL into a 51 per cent or more equity holding. The joint lenders forum (JLF) in a meeting have approved strategic debt restructuring (SDR) in the company.

Just Dial: India’s local search engine Just dial will take-off its Rs 165-crore share buyback programme today. The share repurchase programme will close on 10th March as per the latest update available with the market regulator SEBI.

Tata Power: A state green panel has given forest clearance to Tata Power for setting up of a 52.50 MW wind power project in Koppal district, Karnataka. The proposal was examined by the Regional Empowered Committee (REC) of the Union Environment Ministry in its recent meeting.

Tata Steel: Tata Steel has informed that its Europe unit chief executive Karl Koehler was stepping down and named Hans Fischer to succeed him effective 1st March.  Mr Fischer is currently chief technical officer at Tata Steel Europe.

Bharti Airtel: Bharti Telecom is planning to raise its stake in Bharti Airtel to over 50 per cent through open market purchases, according to reports. Report says that the company proposed to acquire stake from Indian Continental Investment (ICIL) that owns 6.65 per cent stake in Bharti Airtel.