Index trend and stocks in action January 16, 2017

On Friday, the Nifty opened the session on a positive note, and thereafter it drifted lower, touching an intraday low of 8373, after which recovery was seen in the last hour of the trading session that helped Nifty to close with marginal losses. Now going forward, the zone of 8475-8510 is a crucial resistance area. Now let us see why this area is a crucial resistance area. Firstly, the opening downside gap which was created as on November 11, 2016 is placed in the zone of 8460-8510. Secondly, the neckline of Head and Shoulder pattern is placed around levels of 8475-8480 and according to change of polarity, previous support level is likely to act as a resistance level. Hence, Nifty is likely to face strong resistance in the zone of 8475-8510. However, if it moves above the zone of 8475-8510, it’s likely to test levels of 8600-8730 on the higher end. On the downside, Nifty has immediate support placed around levels of 8300-8330, and if it sustains below this level, it's likely to touch levels of 8210.

IOC, BPCL and HPCL: Petrol price was hiked by 42 paisa a litre and diesel by Rs 1.03 paisa a litre.  

Axis Bank: Lender cuts one-year benchmark lending rates by 65 basis points to 8.25 per cent.

IFCI: State-owned development bank has lowered its one-year benchmark by 75 basis points to 10.75 per cent.

Reliance Defence & Engineering: Company has appointed Karthik Subramaniam as the chief executive officer.

Jain Irrigation Systems: Jain Irrigation Systems said its wholly owned direct subsidiary, Jain International Trading B V (JITBV) has proposed to issue upto USD 200 mn of unsecured senior notes worth $200 million.