Index trend and stocks in action August 04, 2016

Indian benchmark indices opened the session on a positive note and started to show weakness soon after opening. Thereafter, the level of 8570 provided some support for the Nifty, but once this level was breached there was a free fall and Nifty ended the session near day’s low. Yesterday evening in what could be a historic moment for the government, the GST Bill was passed almost unanimously in the Rajya Sabha. On the daily chart Nifty has formed a long range negative candle which pierced important support level of 8570. Now going forward the zone of 8470-8500 will act as a crucial support for Nifty. On the upside, earlier support i.e. the zone of 8570-8580 will now act as a resistance level. The RSI has slipped below its crucial level of 60 and at present is quoting around 55 levels.

Titan: Titan has reported 16% lower net profits for the quarter owing to exceptional losses. The company was also hit by slower peak season demand as well as higher gold prices, which typically dampens demand for gold jewellery. The exceptional loss of Rs.97 crore was on account of the voluntary retirement scheme launched by the company.

Logistics Stocks: Logistics companies will be in the limelight today after the Rajya Sabha passed the GST Bill.

Siemens: Siemens said it has received a nearly Rs 217 crore order from Power Grid Company of Bangladesh (PGCB).

NTPC: After HDFC it is the turn of NTPC to raise money abroad through the issue of Masala Bonds. These Masala bonds are denominated in INR, unlike FCCBs that are denominated in foreign currencies. Masala bonds will save the country precious foreign exchange and also do away with the currency risk as the interest and principal servicing has to be done in INR only.

DHFL: Dewan Housing saw its NCD issue oversubscribed by 18 times on the first day itself. The NCD issue size is of Rs.1000 crore with a green-shoe option to retain another Rs.3000 crore resulting in total collections of Rs.4000 crore. The annual yield will be in the range of 9.2-9.3% and it looks like a classic case of investors chasing yields in the current market conditions.

Fortis Healthcare: Fortis Healthcare said its arm Fortis Cancer Care has increased stake in group firm Lalitha Healthcare, thereby taking its overall holding to 79.43 per cent.

Cadila Healthcare: Drug firm Cadila Healthcare has reported a 22.59 per cent dip in consolidated net profit to Rs 356.2 crore for the quarter ended June 30, 2016.