Index trend and stocks in action August 11, 2016

The Indian benchmark indices got off to a sober start, and thereafter, the bear’s dominated the show as the bulls lost the plot and indices kept tumbling down the hill without any stoppage. In the end Nifty ended the session with losses of over 1 per cent and closed below the 8600 mark. In our previous write up we had highlighted that the ‘Upside gap 2 crows’ candle formation is a reversal pattern and this candlestick pattern was followed up by a long range bear candlestick, which indicates that the bears have a strong upper hand in the market. Now going forward first support for Nifty is marked around levels of 8510 and a decisive support is placed around levels of 8470. The level of 8470 is a key support and in the past Nifty has held on to this support smartly. On the upside, the zone of 8630-8650 will act as a barrier for the bulls. The daily 14-day RSI has slipped below the 60 mark and is hovering around 53 levels. The zone of 45-48 is a strong support on the RSI front.

Adani Power: Adani Power has informed that it has received approval of its shareholders to raise up to Rs 10,000 crore through equity shares or other instruments like GDRs and Debentures.

Suven Life Sciences: The Company has reported a 58.1 per cent increase in net profit at Rs 32.57 crore for the fiscal first quarter that ended on June 30, 2016.

Corporation Bank: Net profits at Corporation Bank have plunged by 83% to Rs.36 crore for the first quarter. Net interest income (NII) was down by 4.6% at Rs.1031 crore. The big worry was on the NPA front. Gross NPAs of the bank have risen to 11.1% for the quarter, while net NPAs have touched a high of 7.22%.

M&M: For the first quarter, M&M has reported robust growth in revenues but operating profits and net profits have disappointed the street. While sales were up by 12% on a YOY basis, the operating profits were up by just 3.3% at Rs.1286 crore.

NBFCs: Non-Banking Finance Companies (NBFCs), the Cabinet approved liberalization of foreign investment norms for the NBFCs. Foreign investment in NBFCs can now come under the automatic route provided they are regulated by any of the financial sector regulators.