Index trend and stocks in action June 22, 2016

After rallying smartly in the previous trading session, the Indian benchmark indices got off to a subdued start as indices showed signs of consolidation in early trade on Tuesday and the sideways consolidation movement continued in the market for the rest of the session due to absence of any major trigger. Nifty failed to close above its major hurdle of 61.8 per cent retracement level from high of 9119.20 to low of 6825.80. The Bullish Engulfing pattern formed as on June 20, 2016 was followed up with a small body bearish candle. This suggests that there was lack of follow up buying and market participants are not comfortable at higher levels. Now going forward the zone of 8260-8290 will act as a major hurdle. On the downside, immediate support is placed around 8180 level and next important support is placed around levels of 8060.

Asian Paints: Asian Paints has revised its plans for the proposed manufacturing unit for paints and intermediaries in Vishakhapatnam district of Andhra Pradesh with a maximum capacity of 5,00,000 kilolitres per annum, to be put up in phases. As per company’s management, the approximate amount that would be invested in phases over a period of 12 years from the date of commencement of construction, including the cost of land, will be Rs 1,785 crore.

Sobha: Shares of Sobha will turn ex-date for buyback on Friday. Its board had approved buyback of up to 22.75 lakh shares from shareholders for about Rs 75 crore at Rs 330 a share on proportionate basis.

Maruti Suzuki: Maruti Suzuki said it is ramping up production of premium hatchback Baleno to meet the current demand and reduce waiting period.

DCM Shriram: DCM Shriram will complete the expansion of Chlor Alkali and power plants at Bharuch and Kota by September-October with an estimated investment of Rs 607 crore. At present, the company's combined Chlor Alkali production capacity at its Bharuch and Kota plants is about 780 tonnes per day (TPD) and power capacity is about 188 mw.