Index trend and stocks in action August 22, 2016

Indian benchmark indices got off to a soft start as indices showed signs of consolidation in the early session owing to subdued cues from its Asian peers. Thereafter, the Nifty moved in a tight band and in the afternoon session the Nifty suffered a setback as a sudden bout of selling emerged. Nifty has formed an "Inside bar" on the weekly chart as against the hammer candle formed during the last week. In the last week Nifty moved in a tight band of 8600-8700. Now going forward Nifty has strong support placed around levels of 8600, which is also an important support defined by 21-day EMA. Breach of this support will open gates for correction upto levels of 8540 and 8500. On the upside, a decisive close above 8725-8740 will provide momentum to the bulls. On the daily chart RSI is hovering around the 58 zone and the zone of 52-55 is a strong support.

M&M: Mahindra & Mahindra (M&M) is said to have begun working on what is being pegged as the most affordable electric SUV in the world through its Mahindra Electric unit, formerly known as Mahindra Reva.

PFC: Power Finance Corporation (PFC) has secured shareholders’ approval to raise Rs.55,000 crore ($8.50 billion) over the next 1 year to fund its business growth. PFC, an infrastructure finance company is engaged in providing financial assistance to state power utilities for meeting financial and developmental needs of the power sector.

Ujjivan Financial Services: The Company has submitted an application to RBI to obtain a small finance bank licence for its subsidiary.

Fortis Healthcare:  Fortis Healthcare has announced that its board has approved demerger of its diagnostic business into a listed subsidiary, Fortis Malar Hospitals, through a composite scheme of arrangement and amalgamation.

Banking Stocks: Banking stocks will be in focus today after the Appointment Committee of the Cabinet (ACC) announced the appointment of Urjit Patel as the 24th Governor of RBI for a term of 3 years.