Index trend and stocks in action April 08, 2016

The Indian market started on a positive note, but soon after opening, the market slipped into negative territory and resumed its downward journey. In the mid-afternoon session the indices tried to pare the losses and sneaked back to the neutral line, but could not succeed to hold on, as selling pressure intensified in the last one hour of trade. Finally the index closed below 7600 mark with losses of near about 1 per cent. In the previous two sessions, the zone of 7580-7590 provided some cushioning to the bulls. However, on Thursday this support was breached with rise in the volumes. This indicates bears have turned aggressive. Now going forward immediate support for the index is placed around levels of 7500, and once this support is breached, its likely to correct upto levels of 7400-7430. On the upside, level of 7640 will act as a stiff resistance for the index. The momentum oscillator RSI has seen a sharp decline in the past three-four sessions, and is currently quoting around 49. As per the bullish range of 70-40 levels its likely to touch lower levels of 40 in the coming trading sessions. 

Cairn: The woes seem to linger for Cairn. After the Rs 29,000 crore tax demands, IT department has imposed an additional fine of Rs 10,247 crore, over and above the tax demand.  The tax demand of Rs 29,000 crore also includes an interest component of Rs 18,000 crore which is the backdated interest from 2007 onwards.

HDFC Bank: HDFC Bank has signed a Memorandum of Understanding (MoU) with the Indian Navy to offer salary accounts to Navy personnel.  The subsidiary of HDFC Bank i.e. HBD Financial Services plans to raise up to Rs 350 crore through issuance of debentures on a private placement basis.

Unitech: Realty firm Unitech is looking to raise about Rs 500 crore from private equity firms for the development of housing project in Noida and repay LIC’s debt.

Canara Bank: Canara Bank has announced that the Board of the bank has allowed it to raise the capital of Rs 3,000 crore through issue of BASEL-III Complaint Tier II Bonds by way of private placement at a coupon rate as decided by the Bond Committee of the bank.

Religare Enterprises: Religare Enterprises has informed BSE that Religare Enterprises has completed the exit process from its asset management joint venture, Religare Invesco Asset Management and Religare Invesco Trustee Company.

BHEL: The company has reported net loss of Rs 877 crore provisional for the year ended 31st March, 2016 as compared to net profit of Rs 1,1419 crore in the previous fiscal.

Simplex Projects: Simplex Projects sold 16.31 lakh shares i.e. 51.21 per cent in its wholly-owned subsidiary Simpark Infrastructure. Earlier the company’s board on 28th March had decided to sell its 75 per cent stake in Simpark Infrastructure.