Index trend and stocks in action July 22, 2016

Indian benchmark indices started off the trading session on a positive note and shifted subsequently into a choppy trend with negative bias for the better part of the session. In the afternoon session heavy sell-off was seen and Nifty witnessed a sharp decline and closed near day’s low. On the daily time frame Nifty has formed a ‘Bearish Engulfing’ Candlestick pattern, which consists of a small green candle followed by a large red candle that engulfs the previous candle. However, this pattern is formed during the sideways movement; the analytical significance of this candlestick pattern could be negligible. Now going forward Nifty has immediate support placed around levels of 8470 and a decisive move below this level could be a first indication of range expansion on the downside. On the other hand the zone of 8590-8620 will act as a stiff resistance for Nifty. The daily RSI is quoting around levels of 63 and a breach of level of 60 would open gates for 55 levels.

ITC: ITC has reported decent results for the first quarter. Top-line was up by 6.4 per cent at Rs 8231 crore while profit margins have expanded by 50 basis points. Operating profits have grown by 8.4 per cent and the operating profit margins are steady at over 26 per cent. The cigarette business still contributes nearly 60 per cent of the company’s revenue and a large share of profits.

Kotak Mahindra Bank: Kotak Mahindra Bank has reported a 4 fold jump in profits even as the net interest income  (NII) has disappointed the street. Net Interest Income has grown by 20 per cent to Rs 1919 crore but was slightly below street expectations. The big boost to profitability came from a sharp reduction in operating costs.

NHPC: State-owned NHPC has entered into a pact with BHEL for undertaking hydro power projects in overseas markets.

Biocon: Biocon's first quarter profits have risen 34.45 per cent to Rs 166.6 crore and revenue by 20.7 per cent to Rs 982.4 crore due to improved business across segments.

Power Grid: Power Grid has approved investments of Rs 2,731 crore in various projects, including setting up of a transmission system for solar park at Bhadla in Rajasthan for Rs 1,429.38 crore.