Index trend and stocks in action October 03, 2016

After displaying a dismal performance on Thursday due to geo-political tensions, Nifty consolidated on Friday and ended the day with minor gains above the psychological mark of 8600. The positive sequence of higher top higher bottom is still intact and the zone of 8540-8550 could be considered as a higher bottom of the sequence. But the higher bottom is not yet confirmed. Now going forward Nifty has important support placed in the zone of 8510-8540, and breach of this support zone will open up for correction up to levels of 8440. On the upside, the zone of 8650-8690 will act as a stiff resistance for the Nifty. Daily momentum oscillator is at present trading near lower level of bullish range and is at present quoting 41.

Tata Motors: Homegrown auto major, Tata Motors has announced an eight per cent increase in total sales at 48,648 units in September. The company had sold 45,215 units in the corresponding period last year.

ONGC and Oil India: Both the upstream oil companies in India, ONGC and Oil India, are already making losses on their natural gas production after the latest cut in gas prices. Last week the government cut the price of gas from $3.06/mmbtu to $2.50/mmbtu in tune with the global trend of falling gas prices. Over the last 1½ years since the gas prices were marked to the international weighted average price of gas, we have seen gas prices being cut by over 50%. For both the companies the cost of production of gas without considering return on capital works out to $3/mmbtu.

SBI and PNB: Leading banks like the SBI and PNB may take a stake in the Credit Enhancement Fund that is being launched by the Government of India, in accordance with the announcement made by the Finance Minister in the last budget.

Maruti Suzuki India: Led by record monthly domestic sales from Maruti Suzuki India, automobile manufacturers have been steered in the festive season with robust sales in September. While the country's largest car maker posted 29.4 per cent increase in its domestic passenger vehicle sales in September, others including Mahindra & Mahindra, Ford India and Toyota Kirloskar Motor posted high single digit growth rates.

Eicher Motors: Niche bike maker, Royal Enfield today reported a 30 per cent rise in motorcycle sales to 57,842 units in September. The Company had sold 44,491 units in the same month last year.

Ashok Leyland: Hinduja Group's heavy commercial vehicle maker, Ashok Leyland has posted 18.4 per cent decline in sales in September.