Index trend and stocks in action October 27, 2016

The Indian benchmark indices got off to a negative start, extending their downtrend for the fourth straight session as pessimistic sentiments prevailed across Asian markets. Thereafter, indices shifted into sideways range movement for the better part of the session. Weakness emerged again during the later part of the day and indices closed with a loss of 0.88 per cent. After witnessing a sideways range movement for the last four- five trading sessions, the sideways range was breached on the downside. Now going forward Nifty has support placed in the zone of 8540-8550 and a decisive breach of this support zone may open up for correction up to levels of 8500. On the upside, immediate resistance is placed around levels of 8660 which also happens to be 50-day EMA. Expect volatility in today’s trading session as it's future & option expiry for October series.

ITC: ITC has reported 10 per cent higher net profits at Rs.2500 crore for the second quarter ending September 2016. Total income for the quarter was up by 8 per cent at Rs.13,616 crore. Cigarette revenues have grown by 7 per cent as against the street expectation of just about 3 per cent. FMCG segment was the star performer growing at 13 per cent despite tough market conditions. The agri segment and the hotels segment were almost flat in terms of top-line growth.

Union Bank of India: Union Bank of India said it proposes to raise Rs. 2900 crore through bonds in the next five months.

Hero Motocorp: Hero Motocorp managed to once again beat analyst expectations as second quarter profit grew by 28 per cent to Rs.1004 crore. The rise in profits was aided by strong volume growth as well as healthy margins. Revenues for the quarter were up by 15 per cent at Rs.8448 crore.

NBCC: State-owned LIC picked up more than half of the NBCC shares sold by the government in the Rs 2,218-crore disinvestment. Life Insurance Corporation's stake in the state-run construction firm has gone up to 8.11 per cent following its participation in NBCC's offer for sale which happened last week.

Hindustan Unilever: FMCG major Hindustan Unilever has reported increase in profit by 11.5 per cent to Rs 1095 crore for the quarter ended September. The growth in profit was largely driven by higher other income as well as an expansion in margins on the back of lower input costs.