Index trend and stocks in action October 10, 2016

On the daily chart as on October 7, 2016 Nifty has formed a potential ‘Hammer’ Candle with the open and high arm being the same. This hammer formation is considered less bullish. On the other hand, Nifty is unfolding a reversal pattern form after an uptrend i.e. ‘Head and Shoulder’ pattern and the neckline of this pattern stands around levels of 8550-8515. Immediate support for the Nifty index stands around levels of 8670-8660 and breach below this support zone will open up for correction up to levels of 8600. On the upside, Nifty has strong resistance around zone of 8750-8760; and a move above this level will open gates for up-move up to levels of 8810. The level of 8800-8810 is a crucial resistance because it's 61.8 per cent retracement of the recent down move from the swing high levels of 8968.7. The coming week is a truncated one, and hence, market is likely to witness stock specific movements; in addition Nifty index is likely to witness range bound move.

Oil India: State-run Oil India has received environment clearance for Rs 220 crore development drilling project in Jaisalmer district of Rajasthan.

Dr Reddy’s Laboratories: Dr Reddy’s Laboratories has announced its entry into the Colombian market with its portfolio of cancer drugs.

Deepak Nitrite: Deepak Nitrite via special resolution has approved the issue of equity shares through qualified institutional placement.

Wipro: Software major Wipro unveiled a new solution on Microsoft Azure cloud computing platform and infrastructure to enable global enterprises develop and operate applications faster.

JK Paper: JK Paper has acquired all the remaining 16,865 fully paid equity shares of Rs 10 each of JK Enviro-Tech (JKETL), the subsidiary of the company.  

Ujjivan Financial: Ujjivan Financial to raise Rs 175 crore via NCDs.