Index Trend and Stocks in action October 07, 2015

The benchmark indices opened with a huge positive gap on the back of solid global cues. However, as the day progressed, there was a bout of profit taking in the afternoon session, but the indices managed end in green and continued its winning streak to the fifth straight session.  On the daily chart the index has formed a hanging man candlestick pattern and this pattern is considered a bearish reversal patterns. However, confirmation is required for this pattern to be effective. Now going forward important support for the index is placed around levels of 8095 and next major support stands at levels of 8055. On the upside the level of 8180 will act as a crucial resistance level and the bulls manage to pierce this resistance level, expect it to touch level of 8220.

ICICI BANK: India’s largest private sector bank ICICI despite a 35 basis points cut in its base rates, it has cut on its home loans only by 20-25 basis points keeping a margin of 10 basis points in the process. Loans for exiting borrowers will get priced as per the full rate cut but for the new borrowers, it will only reflect a reduced rate cut.

Aditya Birla Nuvo: Kumar Managalam Birla controlled Aditya Birla Nuvo will sell 49 per cent stake in its wholly owned subsidiary Aditya Birla Renewables to a unit of international private equity firm Abraaj Group to build renewable energy platform focused on developing solar power plants in India.

Bank of Maharashtra: The bank has received shareholder’s approval to raise Rs 394 crore by issuing 10.51 crore equity shares on preferential basis to the government.

Indian Overseas Bank: The RBI has come down heavily on the management of IOB for letting the bank’s condition deteriorate badly. The bank had reported low return on assets for 4 consecutive quarters. The RBI has initiated corrective action at IOB on the grounds that its management is unable to revive it.

NTPC & BEL: Government has embarked on global road shows at four locations, including the US and the UK, to attract investments for its big-ticket stake sale in the country’s largest power producer NTPC and BEL that may fetch around Rs 6,600 crore to the exchequer.