Index trend and stocks in action April 05, 2017

On Monday, Nifty started off the session on a positive note, and thereafter, it gained momentum, closing near day’s high. After opening with an upside gap, Nifty almost filled the entire gap and advanced further to scale to new all-time high levels. At present, Nifty is trading above levels of 9190-9200, and as long as the index holds, and stays above this zone, traders can adopt a buy on dips strategy. Whereas, on the upside, it seems Nifty is approaching towards level of 9280-9300, and around these levels it may face resistance in the short to near term. We have observed formation of negative divergence on the daily 14 period RSI. However, RSI negative divergence formed during an up-move usually indicates sideways movement or mild correction in the market. The zone of 57-60 is crucial on the RSI. 

Hero MotoCorp: Country’s largest two-wheeler maker, Hero MotoCorp reported a marginal increase in sales at 6,09,951 units in March. The company had sold 6,06,542 units in March 2016.

Dr Reddy’s Laboratories: U.S. FDA has completed audit of its Srikakulam facility. Company has received form 483 with 2 observations.

Aditya Birla Nuvo: RBI has granted license to Aditya Birla Idea Payments Bank to carry out business of payments bank in India. AB Nuvo has 51 per cent stake in ABIPBL.

KEC International: Bags new orders worth Rs 1,781 crore, of which orders worth Rs 1,270 crore are international orders while the rest are from domestic markets.

Dilip Buildcon: Received provisional completion certificates prior to scheduled completion date for two projects, and is now entitled to a cumulative bonus of Rs 42.18 crore.

Sobha: Realty firm, Sobha, reported 6.21 per cent year on year fall in its sales bookings last fiscal at Rs 2,012.40 crore.

Titan: Retail growth for Tanishq for the quarter was in excess of 40 per cent, expected at the beginning of the quarter. Eyewear division saw a turnaround in sales in the last quarter on account of revival in sales of the sunglasses business. Trade channel recovered from the after-effects of demonetisation; and retail channels recorded high single digit growth.