Index trend and stocks in action October 06, 2016

Indian benchmark indices started off the session on a positive note; the benchmark indices slipped in to lower level in the late morning session on account of profit booking in the banking and some frontline blue-chip stocks. Thereafter, market moved in a tight range and in the end, market ended the session with moderate losses. On the daily chart Nifty has formed a ‘Bearish Engulfing’ Candlestick pattern as against Doji candle in the previous trading session. After registering a swing high around levels of 8968.70 as on September 7, 2016, there is a formation of lower tops and lower bottoms and today’s high which is around 8806.95 could be considered as a lower top in the structure. Additionally, Nifty is facing stiff resistance around 61.8 per cent retracement level of the recent down move from the swing high of 8968.70 to low of 8555. Now going forward immediate support for Nifty is pegged at levels of 8730 which also happens to be 21-day EMA. A decisive breach of this support level will open up for correction up to levels of 8680. On the upside, the zone of 8800-8810 will act as a stiff resistance. 

Reliance Infra: Reliance Infrastructure plans to sell its transmission business to Adani Transmission to focus its energies entirely on the road infrastructure business. Reliance Infra will be using the proceeds from its sale to partly retire its total debt of Rs.42,300 crore. While the final price of the transmission business is yet to be decided, the company pegs the value of its transmission business at Rs.7000 crore.

ITC: Fast moving consumer goods major, ITC is betting big on its food business with the launch of brand Sunbean Gourmet Coffee, as per the top official of the company.

Indian Oil Corporation: Indian Oil Corporation fixed October 19, 2016 as record date for issue of bonus shares in the ratio of 1:1.

Jaiprakash Power: Jaiprakash Power to consider proposals for restructuring and progress in debt reduction.

NMDC: NMDC sets lump ore prices at Rs 2,100/WMT and that of fines at Rs 1,760/WMT.

Sagar Cement: Sagar Cement has reported its cement production for the month of September, 2016. Total sales stand  at 97,829 million tonne vs 1.15 lakh million tonne, down by 15 per cent year-on-year basis.

Dhanlaxmi Bank: CARE reaffirms the rating on lower tier-II bonds of the Dhanlaxmi bank at CARE BB+.