Index trend and stocks in action August 24, 2016

Indian benchmark indices commenced the session on a cautious note, tracking a mixed trend in the Asian markets. The indices witnessed a sharp selling in the afternoon session; and Nifty breached its important support of 8590-8600 for a brief spell. However, recovery was seen in the closing moments and Nifty ended the session flat with a positive bias. On the daily time frame, Nifty has formed a ‘Dragonfly Doji’ candle, and this candle is typically interpreted as a bullish reversal candlestick pattern that mainly occurs after a down move. Now going forward the low of Dragonfly Doji will act as a crucial support, which is placed around 8580 and breach of this support zone will open gates for correction up to levels of 8530. On the upside, 8685-8690 will act as a resistance point for Nifty. However, the short term trend still remains sideways as long as the Nifty trades in the range of 8580-8700 levels.

NTPC: State-owned power generator, NTPC said it has raised Rs 800 crore through debentures for capital expenditure.

Yes Bank: Yes Bank has made a foray into the credit card market. The bank has set up an ambitious target of having five million customers by 2020 and to become the no. 3 player in the extremely competitive industry.

Aurobindo Pharma: Drug firm Aurobindo Pharma has reported a 23.81 per cent rise in consolidated net profit of Rs 584.96 crore for the first quarter ended June 30, 2016, mainly on account of robust sales.

Birla Corporation: Birla Corporation will set up a three million tonnes per annum (MTPA) clinker plant in Maharashtra to help it expand its presence in the western India market.

HPCL and GAIL: State-owned refiner, Hindustan Petroleum Corp (HPCL); and gas utility, GAIL India will divest up to 50 per cent stake in a Rs 30,000 crore petrochemical plant being set up in Andhra Pradesh.