Index trend and stocks in action September 14, 2016

Indian benchmark indices witnessed a gap down opening, in tandem with the dismal sentiments prevailing in the Asian markets. Thereafter, Nifty did make an attempt to recoup the early losses, but it resulted in a failed attempt and Nifty suffered a nasty hundred and fifty points loss, settling at 8715. On the daily chart Nifty formed an opening downside gap of 110-115 points, which remains open and unchallenged. This opening downside gap is one of the sharp gap down openings in the last 2-3 months. Now going forward if Nifty manages to fill the gap which has been created on September 12, 2016, in next couple of trading sessions, then the destructive effect of this pattern could be invalidated. Nifty has a strong support around levels of 8690 as it's 61.8 per cent retracement levels of recent up-move from levels of 8518 to 8968.7. Decisive breach of this support zone will open up for correction up to levels of 8540-8500 in the short-medium term. On the upside, the zone of 8750-8770 will act as a stiff resistance for Nifty. At present, RSI is quoting around levels of 50, and the zone of 45-46 has acted as a strong support zone in the past 4-5 months.

Suzlon Energy: Suzlon has reported a net loss of Rs. 260 crore for the quarter ended June as against a profit of Rs.1014 crore in the corresponding period last year. Sales are lower by 36% at Rs.1650 crore. EBITDA margin stands at 10.4%.

Coal India: Coal India's net profits for the quarter ended June are 14% down at Rs. 3065 crore. Income from operations for the same period are down by 6% at Rs.18,421 crore.

Reliance Capital: Reliance Capital, part of the ADAG group, is betting big on housing finance business. In fact, Reliance Capital is planning to hive off and list its housing finance business as a separate entity. It is expected to build up its home loan portfolio to Rs.50,000 crore in the next few years. All shareholders in Reliance Capital are likely to be given 1 share free of Reliance Home Finance for every share of Reliance Capital. The company will focus on affordable housing and look at addressing the huge shortfall in housing to the tune of 100 million units in India.

Sun Pharmaceuticals: US Department of Justice has sent summons to Sun Pharmaceuticals Industries' US arm, Taro Pharmaceuticals Industries and its two senior executives seeking information on generic drug pricing.

HCC: Hindustan Construction Company (HCC) has been awarded Rs 181.65 crore contract by the Department of Atomic Energy (DAE) to build premium high rise residential towers at Indira Gandhi Centre for Atomic Research, Kalpakkam in Tamil Nadu.

Motherson Sumi: Auto Components maker Motherson Sumi's board has approved the issue and allotment of 17,762,460 shares of face value Rs 1 of the company to Sumitomo Wiring Systems, Japan at the issue price of Rs 317 per share on a preferential basis.