Index trend and stocks in action September 08, 2016

Indian benchmark indices got off to a positive start and thereafter shifted into a sideways range for a better part of the session. Sudden bout of selling pressure emerged in the second half and Nifty registered low of 8913.35. Nifty registered a new swing high of around 8968.70, but it witnessed some profit booking at higher levels. This resulted in formation of a small negative candle pattern with no upper shadow, which can be termed as a potential negative belt hold line. Hence, going forward market is likely to consolidate or remain sideways with negative bias for the coming sessions. On the downside, important support for Nifty is pegged at 8840 levels. On the upside, the zone of 9000-9010 will act as a stiff resistance. The RSI at present is quoting around levels of 70, and has reversed after registering high of 72 levels. In the last couple of months it has been witnessed that RSI has turned down from levels of 72 and has acted as a stiff resistance in the past.

ONGC: ONGC has disappointed the street with a 21.5% fall in net profits for the quarter to Rs.4232 crore even as total revenues have fallen by 21.4% to Rs.17,784 crore. The fall in top-line was understandable due to the weak oil prices. Even the EBITDA has come in nearly 20% lower. Due to the proportionate fall in top-line and bottom-line, the company has not seen any appreciable improvement in operating margins.

PNC Infratech: The National Highways Authority of India (NHAI) said it has awarded a Rs 820 crore highway project in Rajasthan to PNC Infratech.

GAIL: GAIL has had a robust quarter. It has reported a 244% jump in net profits at Rs.1335 crore largely driven by the gains on stake sale in Mahanagar Gas Ltd.

Ashok Leyland: Ashok Leyland plans to buy out 3 of Nissan’s stakes in 3 joint ventures. These 3 joint ventures will end up becoming the wholly owned subsidiaries of Ashok Leyland.

ICICI Bank: ICICI Prudential Life has received SEBI approval for its proposed IPO. The insurance JV is a joint venture between ICICI Bank and Prudential Insurance of UK. Currently, ICICI Bank holds 68 per cent in the insurance JV; while Prudential of UK holds 26 per cent. The balance is held by a clutch of institutional investors which include marquee names like Temasek and Premji Invest. A total of 12.65 per cent of the company’s equity will be sold through an offer-for-sale by ICICI Bank to the public.

Yes Bank: Yes Bank has launched a Qualified Institutional Placement issue to raise $1 billion, a move that will help the private sector lender expand while strengthening its capital base.

Motherson Sumi: Auto component major, Motherson Sumi Systems will be acquiring the automotive business unit of Abraham and Co in Hungary for about Rs 77 crore.