Index trend and stocks in action April 27, 2016

The Indian market started the session on a weak note tracking negative cues in the Asian Markets. Market was moving in a narrow range for a initial couple of hours of trading session, and a sudden spurt was witnessed in the market in the afternoon trade owing to broad based bottom fishing in the undervalued stocks. Eventually, Nifty settled above 7950 with gains of over a per cent. On the daily time frame Nifty has formed a ‘Bullish Engulfing’ Candle, which indicates bulls registered a strong comeback from the lower levels. Moreover, the last three trading sessions' range has been engulfed in yesterday’s trading session. At present, Nifty is hovering around strong resistance zone of 7970-8000. This zone is an important level as in the past it has worked as a strong support zone and now this support zone is acting as a strong hurdle. A move above this resistance zone is likely to take Nifty up to levels of 8080-8130. On the downside, important support is placed around 7870 levels. A breach of this level will attract more selling and in that case Nifty is likely to move lower up to levels of 7800.

NHPC: The government will sell an 11.36 per cent stake in state-owned hydropower producer NHPC through a two-day offer for sale (OFS).

IDFC Bank: IDFC Bank reported a 32 per cent fall in profits for the Q4 at Rs 165 crore. However, since the bank started its operations only in October, 2015 it does not have a full year track record for comparison. Hence, the comparison is more on quarter-to-quarter basis. Gross NPAs jumped up sharply from 3.09 per cent to 6.16 per cent, making it one of the unstable book in the private sector banks.

Axis Bank: Axis Bank reported net profit for the fourth quarter which was marginally better than street expectation. The net profit was down 1.2 per cent to Rs 2154 crore, much better than estimates of 7 per cent fall in the profits. On the positive side, net interest income (NII) was up by an encouraging 19.8 per cent to Rs 4552 crore in the Q4.

Maruti Suzuki: Auto major Maruti Suzuki reported a 12 per cent fall in profit to Rs 1130 crore for Q4. The fall in profits could be largely attributed to higher costs and production delays due to unrest near its factory. The company declared dividend of Rs 35 per share. The company also took a beating due to a strong yen, even as weak overall demand tended to impact margins during the quarter.

Bharti Airtel: Bharti Airtel will announce its Q4 result today.