Index trend and stocks in action May 06, 2016

After suffering a setback for three consecutive trading sessions, the Indian market took a breather on Thursday. Nifty opened with an upside gap, and thereafter it continued its upward march. However, supply was witnessed around levels of 7777 as its 200-day EMA. On the daily time frame Nifty has formed a ‘long legged doji’ which is indicating confusion amongst the traders. In the past two trading sessions, the level of 7695 has proved to be an important support for Nifty as it is a 61.8 per cent retracement level of an up-move from 7516 to 7992. Breach of the 7695 level will open gates for correction upto levels of 7630-7600. On the upside, zone of 7760-7780 will act as a hurdle for the index. A decisive move above the zone of 7760-7780 could possibly result in a positive trend.

Hero MotoCorp: India’s largest two-wheeler company, Hero MotoCorp,has seen a 71 per cent jump in its net profits to Rs 814 crore in the Q4 ending March. During the same period, total income was up by 10.6 per cent to Rs 7512 crore. The big surprise was the EBITDA margin which went up sharply from 12.3 per cent last year to 15.7 this year.

Reliance Defence: Reliance Defence has secured 15 licenses for missiles and equipment. The list of licensed products include, small arms, heavy weapons, armoured vehicles, ammunition, explosives, electronic warfare systems and missiles.  This includes the design, development and manufacture of weapons.

Banking Stocks: The much awaited Bankruptcy Law was cleared in the Lok Sabha. The new law is intended to make resolutions to disputes like bad loans will be much quicker and will enable banks to flawlessly take over the assets of the defaulting company to recover their dues. The Bill still requires to be sanctioned in the Rajya Sabha before becoming law.

SBI: State Bank of India (SBI) has announced the launch of mVisa, a mobile-based payment solution. The service will enable customers to make payments from their smartphones, by simply scanning the unique merchant QR code at merchant outlets.

Bharti Airtel: Bharti Airtel said its Netherlands-based subsidiary has signed a definitive agreement to sell-and-leaseback about 950 telecommunications towers in the Democratic Republic of Congo to Helios Tower Africa.