Index trend and stocks in action August 09, 2016

Indian benchmark indices started off the session on a positive note owing to positive sentiments among its Asian peers. However, Nifty traded in a narrow range for the most part of the day with a positive bias. In the end market ended above 8700 mark. On the daily time frame Nifty has formed a ‘Small Doji’ candlestick pattern, which indicates indecision among the market participants ahead of the crucial event i.e. RBI's mid quarter policy review. Now going forward the zone of 8670-8680 will act as an immediate support level for Nifty, and if Nifty sustains below this level expect correction up to levels of 8620-8570. On the upside, the zone of 8725-8735 will remain a hurdle for the bulls, and if the Nifty manages to sustain above this zone, expect a good move up to levels of 8780-8800. Overall the structure of the market remains in the favour of the bulls, but the formation of Small doji is followed by a bearish candlestick, and it will give first indication of correction. However, outcome of RBI’s mid quarter policy will decide the fate of the market.

Idea Cellular: Idea Cellular has posted a 36 per cent fall in first-quarter's net profit, upset by higher costs and pressure on data growth, although its voice business improved after the company reduced discounts.

REC: The board of Rural Electrification Corp., (REC) will meet on August 11, 2016 to consider issuing bonus shares to its shareholders, the company said in an exchange filing.

Max Financial and HDFC: HDFC's chairman, Deepak Parekh and Max Group's chairman, Analjit Singh have announced a deal merging their life insurance businesses to create what will eventually be India’s largest listed insurance company with an estimated market value of Rs 67,000 crore.   

Manappuram Finance: South-based gold loan provider Manappuram Finance is on the prowl for acquisition of microfinance companies as it plans to grow its share of non-gold loans, riding on the sector’s success story.

Tata Motors: Tata Motors has reported a 20 per cent rise in global sales at 88,159 units, including that of Jaguar Land Rover (JLR) vehicles, in July.