Index trend and stocks in action May 25, 2016

The Indian market got off to a subdued start tracking negative cues from the Asian peers. Thereafter, market traded in a narrow range due to lack of any encouraging leads. However, in the second half some momentum was shown by bulls and market ended its losing streak.

On the daily time frame Nifty has managed to hold on to its important support level of 7700-7720 as defined by its 50-day EMA. Now going forward if market sustains above 7770-7780, it’s likely to gain momentum up to levels of 7830. On the downside, if Nifty fails to hold on to its support of 7700-7720 levels its likely to drift lower up to levels of 7650-7620.

Tech Mahindra: Tech Mahindra, one of the largest IT firm in the country has reported Q4 net profits 18 per cent higher at Rs 897 crore. This rise in profit was largely driven by other income and forex gains. Revenues were up just about 2.7 per cent in rupee terms and 0.75 per cent in dollar terms. Significantly, the company has decided to drop its payment bank plans for the time being despite procuring the license in August, 2015.

VRL Logistics: VRL Logistics has plunged 20 per cent in a single day on Tuesday. The reason was the promoter’s decision to float a regional airline.  Shareholders have not been too happy with aviation plans as they have seen the disastrous outcome of companies like Kingfisher and Deccan Chronicle. Although, the investment is coming from the private funds of the promoter, the shareholders of VRL gave a thumbs-down as they felt that it would dilute the focus of the company, which has been doing fairly well in its core logistics business.

Cipla: Cipla's Q4 profits stand at Rs 808.70 million, disappointing the street that was expecting better results; whereas the same was at Rs 2596.60 million for the quarter ended 31st March, 2015.

Bharti Airtel: Bharti Airtel has entered into a definitive agreement to acquire 1800 MHz spectrum from Videocon Telecom for Rs 4,428 crore.

Ruchi Soya Industries:  The Securities and Exchange Board of India has barred Ruchi Soya Industries, the country’s largest soya oil producer, from dealing in the securities market for indulging in manipulative and fraudulent activities in castor seed contracts.

Larsen &Toubro: L&T, one of the leading engineering and construction firms in the country, will announce its Q4 numbers today.

Apollo Hospital: Apollo Hospital will announce its financial results today.