Index trend and stocks in action July 27, 2016

After witnessing a scintillating rally as on July 25, 2016, Nifty was not able to continue with follow-through up-move on Tuesday and witnessed some correction. Nifty opened on a subdued note and consolidated for the major part of the session. Furthermore weakness emerged during the afternoon session and Nifty ended the session near the day’s low. On the Daily Chart Nifty has formed ‘Tweezer Top’ candlestick pattern. This pattern implies that at the top level buyers were not able to drive the price higher, and thus signals a possible turning point. However, a confirmation should be needed in terms of the price, to consider this as a reversal point. At present, Nifty is quoting near the support level of 8570-8585. As long as the support level of 8570 is intact, the momentum will be in the favour of bulls. On the other hand if this support is breached, then its likely to test levels of 8510-8470.   

Dr. Reddy's: Dr Reddy's Labs has disappointed the street with a 76 per cent fall in net profits even as US sales fell sharply by 16 per cent in the first quarter. Total revenues for the company fell by 14 per cent to Rs 3222 crore as the company was sharply hit by a downturn in business in the US and Venezuela. The company also suffered from price erosion and delayed launch.

ACC: Cement major ACC saw its Q2 consolidated net profits spurt by 79 per cent to Rs 239 crore owing to solid operational performance. Impacted by weak demand and lower realisations, the company’s net sales are down 3.1 per cent to Rs 2,870 crore against Rs 2,961 crore last year.

Educomp Solutions: Information Technology company Educomp Solutions said it will divest its entire shareholding in its subsidiary Vidya Mandir Classes Limited (VMCL) following invocation of corporate guarantee by ICICI Bank to the company.

Delta Corp: Delta Corp has informed BSE that the company has signed a leave and license agreement for premises in the Denzong Regency Hotel, Gangtok, Sikkim, to operate a casino. Delta has also obtained a provisional license from the Government of Sikkim Casino (Control & Tax) Act, 2002 for the same.

Jet Airways & Indigo: Domestic Air passenger traffic has grown by 21 per cent in the month of June 2016. Indigo happens to be the largest carrier by a small margin, followed closely by Jet Airways.