Index trend and stocks in action August 02, 2016

Indian benchmark indices started off the first trading day of a fresh month i.e. August on a positive note and continued to build on morning gains. However, a sudden bout of selling emerged in the afternoon session and pushed market in negative territory. In the end indices did see a recovery but failed to close in positive territory. On the daily chart Nifty has formed a ‘Spinning top’ Candlestick pattern. This pattern consists of wicks longer than bodies and the open and close prices of the candle are very close, which means the market price did not really increase or decrease at the end of the trading session. It reflects market indecision. Now going forward important support for Nifty stands at levels of 8570 and breach of this level will open gates for correction up to levels of 8510. On the upside, the zone of 8690-8720 will act as a stiff resistance zone. 

Interglobe: Interglobe Aviation, owner of Indigo Airlines, has reported a 7% fall in net profits for the first quarter. The company has blamed competitive pricing pressures as a key reason for the fall in profits in the quarter. Most airline companies have benefited substantially over the past few months due to falling ATF prices in line with global crude oil prices.

Auto Sales: The July sales numbers for auto companies were a mixed bag. While domestic sales lifted Maruti sales by 13.9%, Enfield saw a 33% growth in sales for the month of July. Overall sales growth at Maruti was 12.7% as the exports market was a little subdued. Interestingly, Enfield also saw a 40% growth in exports during the month as it operates more in the premium segment, which is not exactly hit by the global slowdown.

Tech Mahindra: India’s fifth largest IT services firm Tech Mahindra has posted a 20.5 per cent rise in consolidated net profit at Rs 750.1 crore for the quarter ended June 30 as compared to FY16Q1. PAT went down by 12.5 per cent, while revenue rose marginally by 0.5 per cent.

Hotel Leela: The company board has approved commencement of sale of its assets at the Leela Palace, Chennai and the Leela Palace, New Delhi.

JKumar Infra: The Reserve Bank of India has notified that foreign institutional investors/registered foreign portfolio investors can now invest up to 40 per cent in JKumar Infraprojects up from the existing 24 per cent.