Index trend and stocks in action August 01, 2016

On the daily time frame, Nifty has formed a ‘Bearish Tweezer Top’ like candlestick pattern as on July 29, 2016. This pattern  occurs during an uptrend when bulls take prices higher, often closing the day near the highs. However, on the second day the market opens and corrects, often eliminating the entire gains of 1^st day. On the daily chart first important support zone stands at levels of 8600 and breach of this support zone will open gates for correction up to levels of 8570. On the upside, zone of 8680-85 will act as a resistance zone. A move above 8680-85 levels will help Nifty to gain further momentum and in that case it’s likely to test levels of 8730-8780.

Spice Jet: The Delhi High Court directed budget airline SpiceJet to deposit Rs 579 crore and resolve a share purchase dispute with its former owner Kalanithi Maran through arbitration over the next 12 months.

ICICI Bank: Bad loans came back to haunt ICICI Bank during the quarter as profits fell by 25% to Rs.3326 crore. This is the biggest quarterly fall in profits that ICICI Bank has faced in the last 15 years. Net Interest Income (NII) was flat at Rs.5158 crore. The advances book showed a smart 12% growth owing to a sharp growth in retail advances. The big concern for ICICI Bank was on the asset quality front. Gross NPAs have increased from 5.82% to 5.87% on a sequential basis; while net NPAs have grown from 2.98% to 3.35%.

Colgate-Palmolive: The FMCG giant plans to launch an India-focused brand as Patanjali threatens to upset the established order in fast moving consumer goods.

IOC, BPCL & HPCL: Petrol Price was cut by Rs 1.42 a litre and diesel prices by Rs 2.01 per litre. This was third reduction in rates this month as the turmoil in international crude oil prices continues.

DRL, CIPLA and Aurobindo: DRL, CIPLA and Aurobindo Pharma are among 11 firms that may acquire 79 existing and future drugs from Teva Pharmaceuticals as part of the condition set by the US Federal Trade Commission for the $40.5 billion Teva-Allegran deal.

IRB Infra: Toll road firm IRB Infra has received a contract worth Rs 2,100 crore from the National Highway Authority of India (NHAI) for a six-lane project in Rajasthan and Gujarat.