Index trend and stocks in action May 10, 2016

After witnessing weak sessions in the last week, the Indian market opened with an upside gap of around 22 points following overnight gains in the US market. As the day progressed the market breached its immediate resistance of 7780, which was also its 200-day EMA. Once this level was breached it was a bull show all the way and market closed around day’s high with gains of over 1.7 per cent. Nifty formed a ‘Bullish Marubozu’ candlestick as against previous days hammer candle. This is a positive indication for the Nifty.  Now going forward Nifty has immediate resistance around levels of 7890-7900. If Nifty sustains above this zone expect upward momentum to continue up to levels of 7970-8000. However, levels of 8000 would act as a strong barrier for the bulls. On the downside, level of 7800 would act as a strong support level as it's a 38.2 per cent retracement of rise from 7516 to 7992.

Hindustan Unilever: Hindustan Unilever has announced 7 per cent higher profits at Rs 1090 crore for the quarter ended March 2016, even as volume growth disappointed at just mere 4 per cent. The street was disappointed as they were anticipating a volume growth of 5-6 per cent. This happens to be the lowest volume growth that Hindustan Unilever has seen in the last 6 quarters.

Just Dial: Global Brokerage firm, Goldman Sachs, has raised serious doubts over the growth model of Just Dial. According to Goldman, Just Dial will find it difficult to deliver 6 per cent CAGR growth in the coming year. It has given a "sell" rating on the stock with a target price of Rs 500.

Arvind: Arvind has announced that a meeting of the board of directors of the Company will be held on May 12, 2016, inter alia to consider the matter regarding fund raising options available to the Company by way of issue of Non-convertible Debentures up to Rs 500 crores on a private placement basis subject to approval of shareholders.

GMR: Malaysian utility Tenaga Nasional, backed by sovereign wealth fund Khazanah Nasional, will buy a 30 per cent stake in the energy unit of indebted Indian Infrastructure group, GMR, for $300 million in cash.

Aurionpro Solutions: Aurionpro Solutions said it will acquire US-based Spikes Security to strengthen its position in the enterprise security space.

Ujjivan Financial Services: Microfinance player Ujjivan Financial Services, which witnessed robust demand for its recently concluded IPO, will make its debut on the bourses today.