Index trend and stocks in action August 08, 2016

Indian benchmark indices got off to a thumping opening on Friday as investors and traders were largely influenced by the supportive leads from the Asian peers. Thereafter, the Indices slowly but steadily started to build upon the gap up opening and in the end market surged over 1.5 per cent. On the daily chart Nifty has formed a strong bullish candle which resembles to ‘Bullish Marubozu’. This candlestick pattern indicates that the buyers controlled the price from the opening bell to the close of the day. Whereas, on the Weekly chart Nifty has formed a Dragonfly Doji candle pattern, and this pattern has a long lower shadow which implies that bears were able to press prices downward, but an area of support was established at the low of the day and buying pressure was able to push prices back near to the open prices. Now going forward the zone of 8715-8730 is a strong hurdle for Nifty, and a move above this zone will open gates for further momentum on the upside. On the downside 8570-8590 will be a crucial support zone for Nifty.

IT Stocks: IT Stocks will be in focus after US-based Cognizant Technology Solutions lowered its full-year revenue forecast earlier this year. Cognizant is now predicting revenues in the range of $13.47 billion to $13.60 billion, implying growth of only about 8.5-9.5 per cent.

Wockhardt: The US Food and Drugs Administration (FDA) has issued an import alert on Wockhardt’s Ankleshwar Plant for alleged violation of goods manufacturing practices.

HPCL: Reserve Bank has allowed foreign investors to hike their stake in Hindustan Petroleum Corp. to up to 40 per cent under the portfolio investment scheme (PIS).

Asian Paints: Asian Paints would expand the manufacturing capacity of its two units based at Sriperumbudur in Tamil Nadu and Ankaleshwar Gujarat.

DLF: DLF plans to raise up to Rs 2,500 crore through issuance of non-convertible debentures for working capital requirement and reducing debt.