Index trend and stocks in action July 18, 2016

Indian market after starting on a flattish note, turned volatile owing to quarterly results of IT bellwether Infosys. However, market did manage to recoup some losses from lower level and ended the session with marginal losses. On the daily time frame, Nifty formed a ‘High Wave’ Candlestick pattern, which consists of small body and long shadows. Usually, formation of such a high wave pattern at a significant resistance level leads to a top reversal pattern. But we need a confirmation for this pattern in the form of bearish candlestick pattern in the next trading session. Now going forward the zone of 8620-8650 will act as a stiff resistance for Nifty. On the downside, immediate support for Nifty is placed around levels of 8470. If bears manage to pierce level of 8470, it’s likely to test levels of 8400.

Reliance Industries: Reliance Industries flattered the street on the upside. While maintaining its growth rate in revenues and net profits, Reliance surprised the street by reporting $11.5 gross refining margins (GRM) for the quarter. This is nearly 550 bps higher than the benchmark Singapore GRM and almost $1 higher than the GRM reported by Reliance in the previous quarter.

Infosys: Infosys disappointed the street with weaker than expected numbers. Revenues were marginally up and the net consolidated profit saw a drop of 4.47 per cent.

LT Foods: The company has acquired iconic brand 817 Elephant brand of rice through its UK subsidiary LT Foods International Limited. Post this acquisition the company will strengthen its existing presence in Canada, USA and Israel.  

Jindal Poly Films: The Company has commissioned 7th BOPP films production line of 41,000 TPA, increasing the Indian BOPP capacity to 251,000 TPA at its Nasik location.

Ashok Leyland: Hinduja Group flagship Ashok Leyland will be setting up a bus assembly plant in Kenya with an investment of Rs 70 crore as part of its global expansion plans. The new plant in Kenya will serve atleast three neighbouring countries, besides catering to local demand.

Bharti Airtel: Bharti Airtel has slashed effective data rates for its prepaid customers, offering up to 67 per cent more benefits for the same price.

IOC, HPCL and BPCL: Petrol prices were slashed by Rs 2.25 a litre and diesel by 42 paise a litre. This was the second reduction in rates this month.

HUL: HUL will report its quarterly numbers today.