Index trend and stocks in action July 20, 2016

Indian benchmark Indices started off the session on a positive note and soon after opening moved in a tight range till afternoon. Sudden bouts of profit booking emerged in the late afternoon session and indices touched the lowest point of the day. Smart buying emerged in the final hour of trading session and Nifty managed to close near day’s high. On the daily time frame Nifty formed a ‘Hammer’ like candle, and this candle indicates emergence of buying interest from the lower levels. Nifty managed to hold on to support zone of 8470. Now going forward if Nifty manages to trade above levels of 8545, bulls are likely to resume their upward march. On the upside, the zone of 8570-8590 will act as a resistance zone. On the downside, the level of 8470 will act as a support zone and breach below this level will open gates for correction up to levels of 8420.

Wipro: Wipro Q1 results disappointed the street with an 8.3 per cent sequential fall in profits. This was well below the street estimates. Consolidated revenues for the quarter declined by a marginal 0.3 per cent. Wipro has guided flat revenues in the coming quarters.

Ultratech: Ultratech reported decent set of numbers. Revenues for the first quarter were up by 3.8 per cent to Rs 6232 crore while profits on a stand-alone basis were up by 26 per cent at Rs 757 crore. The operating profit margins at 21.5 per cent positions Ultratech among the most profitable large cement companies in India. The biggest advantage for Ultratech was the 15 per cent decline in power and fuel costs.

Reliance Industries: Reliance Industries will be pumping in Rs 15,000 crore into Reliance Jio through a rights issue. This total amount of Rs 15,000 crore will be infused into Jio by issuing 1500 crore rights shares of Rs 10 each to the existing shareholders of Reliance Industries.

Hindalco: Reserve Bank of India (RBI) has approved Australian miner Metal X’s improved takeover offer for its subsidiary Aditya Birla Minerals (ABML).

JBM Auto: The Company said it will invest Rs 300 crore for development and manufacturing of electric and hybrid buses in India through its joint venture with Poland’s Solaris Bus & Coach.

Adani Ports: Fitch affirmed investment grade rating with stable outlook for Adani Ports and Special Economic Zone’s long term foreign-currency Issuer Default Ratings (IDR) at ‘BBB’, saying it has the ability to generate strong cash flows.

Reliance Communication: ADAG led Reliance Communication has incorporated an investment firm in the Netherlands in the name of Aircom Holdco BV.