Index trend and stocks in action October 18, 2016

Indian benchmark indices opened in green and thereafter they moved in a narrow range for the first hour of trading session. However, sharp selling was observed in noon session, which led to benchmark indices falling to the lowest point of the day as sell off in Chinese shares raised concerns around global growth. At present, Nifty is placed at the edge of a key lower level support of 8510-8500. A decisive breach of this support zone will open gates for correction up to levels of 8440. On the upside, 8620 will act as a stiff resistance zone for the Nifty. Daily RSI has slipped below level of 40 and this is the first time the RSI has slipped in the last 5-6 months.

Ultratech Cement: Ultratech Cement reported a strong 2nd quarter with net profits up by 31 per cent on a YOY basis. Revenues, however, were down by 2.2 per cent to Rs.6195 crore, implying that most of the higher profits came from operating efficiencies and other income. The lower revenues could be explained by lower realisations for Ultratech. While profit growth was in line with expectations, the operating margins came in for some disappointment.

Axis Bank: Axis Bank has cut its marginal cost of funds-based lending rate by 0.05 per cent across all tenors, effective today.

Orient Paper: C K Birla Group firm Orient Paper and Industries Limited (OPIL) said that its board has approved demerger of its consumer electric division into a new entity, Orient Electric.

Ashok Leyland: India’s first fully “Made in India” electric bus was launched by auto major Ashok Leyland.