Index trend and stocks in action August 16, 2016

Indian benchmark indices started the session on an optimistic note tracking their Asian peers. Thereafter, the indices moved in a narrow range. A sudden spurt was witnessed in the afternoon session owing to buying in the PSU Banking stocks as the state-run bank SBI announced its quarterly numbers. In the end market ended the session with a gain of about 1 per cent. On the daily time frame, Nifty has formed a ‘Bullish Belt Hold’ like Candlestick pattern as on July 12, 2016. This pattern is a single candlestick pattern that is identical to a Marubozu candlestick in that it has a large real body with little or no shadows, indicating the strength of bullish activity. Now going forward immediate support for Nifty is placed around levels of 8600, and breach of this support will open up gates for correction up to levels of 8510. On the upside, zone of 8730-8745 will act as a resistance zone.

IOC, BPCL and HPCL: Petrol Prices have been slashed by Rs 1 per litre and Diesel prices by Rs 2 per litre, following a drop in international prices.

Infosys: Royal Bank of Scotland (RBS) has just cancelled a major contract that it had given out to Infosys. The cancellation could put nearly 3000 jobs in Infosys at risk. According to analysts, this cancellation could negatively impact the revenues of Infosys by $40 million for the full year.

Suzlon: Suzlon energy will seek shareholders' approval to raise up to Rs 2,000 crore through issuance of securities.

Pfizer: Pharmaceutical giant Pfizer plans to introduce more drugs from its global portfolio, in India, including an injectable from the stable of Hospira which it had acquired last year.

Inox Leisure: The second largest cinema exhibitor in India, Inox Leisure, has entered into agreement with real estate developers and upcoming shopping malls to expand its presence.