Index trend and stocks in action September 22, 2016

The US Federal Reserve has decided to maintain status quo on Fed rates. The market had already assigned a probability of over 90 per cent that Fed rates would not be touched in the light of the forthcoming Presidential elections in the US and the existence of economic slowdown across Asia and Europe. However, the dialect of Janet Yellen was hawkish enough to clearly point towards a rate hike in December this year. On the daily chart Nifty has formed yet another side by side candle, which is a small body with upper and lower shadow. In the last four trading sessions, Nifty has been hovering in a narrow range of 8750-8850. Now since the outcome of US Fed is known, we expect Nifty to move out of this range. Now going forward resistance for Nifty is placed in the zone of 8825-8850, and a decisive move above this zone will open doors for up-side up to levels of 8950. On the downside, important support is placed around 8750, and a decisive move below this level will open up for correction up to 8680.

HDFC: Mortgage lender, HDFC will raise Rs 1,340 crore through an issue of bonds on a private placement basis. The bonds in the nature of secured redeemable non-convertible debentures will bear coupon rate of 7.67 per cent annually.

Mahindra & Mahindra: Mahindra & Mahindra is recalling an unspecified number of its new generation Scorpio and NuvoSport SUVs to rectify faulty fluid hoses in the engine compartment.

India Oil and GAIL: India's biggest refiner Indian Oil Corp Ltd., and gas transporter, Gail (India) Ltd., will buy a combined 49 per cent stake in a liquefied natural gas (LNG) terminal being built in the eastern state of Odisha. The Dhamra LNG terminal, with five million tonnes of natural gas regasification capacity, is being built by a unit of billionaire Gautam Adani's Adani Enterprises Ltd.