Index trend and stocks in action May 18, 2016

Indian market started the session with a positive upside gap. Sentiments were upbeat since the beginning, after Finance Minister Arun Jaitley hinted at getting the GST bill passed in the upcoming monsoon session. However, the market extended its morning gains in the mid-afternoon session as positive cues from European markets helped the bulls. After an upside gap, Nifty went on to register a high of 7940; however, supply was seen at higher levels and Nifty entered into a corrective phase and made an attempt to fill the upside gap which was created, but the gap remained unfilled. Nifty on the daily time frame formed a potential “Doji” Candlestick pattern, which indicates indecision amongst the market participants. On the 60 Min time frame Nifty has completed bearish harmonic pattern “Alternate Shark”. Now going forward levels of 7870 will act as a crucial support level for Nifty. In any case, if this support is breached it’s likely to take Nifty up to levels of 7820-7770. On the upside, level of 7940 will act as a hurdle for the bulls. 

NBCC:  State-run National Buildings Construction Corp. Ltd (NBCC) has dropped plans to raise Rs.1,000 crore fresh capital through a Follow on Public Offer (FPO) route, saying it currently does not require funds for business expansion.

Piramal Enterprises and Shriram Group companies: Ajay Piramal plans to merge all his finance entities and those of the Shriram Group, where he is the single largest shareholder. A merger will create one of the biggest financial services companies in India, with a presence in both institutional and retail business, apart from insurance and mutual funds.

Mahindra Holidays & Resorts India Limited (MHRIL): India’s leading leisure hospitality provider has reported 29% growth in PAT at Rs 32.09 crore in Q4FY16 (before exceptional items). Total Income has grown by 23% at Rs 254.3 crore as compared to Rs 207.2 crore in Q4FY15.

Srei Infrastructure: Srei Infrastructure is looking to raise Rs 750-1,200 crore by diluting stake in Bharat Road Network Limited (BRNL), as part of the lender’s strategic investment portfolio.