Index trend and stocks in action June 27, 2016

The Indian benchmark indices witnessed a range bound movement in the past 6-7 trading sessions, as an outcome of a big global event was awaited and on Friday the indices got off to a gap down opening after the referendum result indicated Britain would leave the European Union, triggering all-round selling. However, recovery was seen in the later half and Nifty managed to close above 8050 mark. On the daily chart, after a gap down opening, Nifty took support around levels of 7920-7930, which is also 61.8 per cent retracement level of recent up-move from the levels of 7715.80 to high of 8294.95. On the daily time frame Nifty has formed a candlestick like a ‘Hammer’ which has a long lower shadow, and indicates an occurrence of buying interest at lower levels. Now going forward the zone of 7970-8000 would act as an important support for Nifty. On the upside, level of 8150-8180 would act as a strong resistance for Nifty. Firstly, 23.6 per cent retracement of recent up-move stands at 8158 and secondly the gap which was created on June 24, 2016 will act as a resistance in near term. The Daily RSI is quoting around 48-49 levels. Since, March, 2016 the bottom level for RSI is around 45 levels, hence, it’s likely that a pullback can be seen from these levels.

Aban Offshore: Unit has received contract from ONGC for the deployment of drillship Aban Abraham for a firm period of 2 years. Expected revenues from the deployment are estimated at $87 million, and it is expected to begin in Q4 of 2016.

Axis Bank: Axis Bank has sought shareholders’ approval to raise a sum of Rs 35,000 crore over the next 12 months through a mix of instruments like senior debt, subordinated debt, medium term notes, non-convertible bonds and green bonds. The funds will be required to maintain its capital adequacy ratio (CAR).

Tata Teleservices: The Company will raise up to Rs 3,000 crore from its promoter Tata Teleservices through allotment of preferential equities.

Adani Enterprises: The Company said that it has raised Rs 150 crore through issuance of non-convertible debentures on private placement basis.

Asian Paints: The Company is investing around Rs 4,000 crore on setting up two manufacturing plants in Karnataka and Andhra Pradesh.

Reliance Communication: Reliance Telecom, a wholly owned unit of Reliance Communications, will demerge its operations in five circles back into RCom which will allow customers to avail seamless 3G and 4G services, as per a board approval.