Index trend and stocks in action June 08, 2017

On Wednesday, Nifty started the session on positive note and moved higher in early part of session. However, weakness emerged before the RBI policy announcement and post the RBI policy outcome recovery was seen and Nifty ended the session with minor gains. On the daily chart Nifty has formed a ‘Doji’ candlestick pattern. The index has respected the support level of 9630 and now it needs to hold above level of 9680 if it were to extend its upward rally towards levels of 9710 and 9735. On the downside, the region of 9620-9630, may continue to act as a strong support level and if this support is breached, it is likely to slide down to the level of 9570.

Infosys: As per recent update Infosys would like to clarify that the news reports on pricing cuts seen by the IT industry being attributed to the Infosys COO are incorrect. His comments have been misrepresented. The comments made in the interview refer to cost take out efforts by clients towards reducing their program investments in the ‘run’ side of business, to reinvest them in newer technologies or the ‘change’ side of business. Cost take outs by clients do not necessarily translate into an impact on vendor pricing. There are enough levers available to meet the client demand on cost take-outs without necessarily impacting the pricing.

Tata Power: ICRA has revised the Long Term rating for the company from AA to AA-, while the short term rating has been reaffirmed at A1+. 

Cyient: Cyient announces expanded strategic relationship with United Technologies Corp.