Index trend and stocks in action August 31, 2016

Indian benchmark indices got off to a positive start as investors were largely influenced by the supportive leads from the Asian markets. The indices soon gathered momentum and builded up on morning gains. The second half was ferocious as Nifty index surpassed the critical resistance level of 8700 mark. In the end Nifty gained over 1.5 per cent. Nifty has managed to close above the major resistance level of 8730-8735. The range which was playing out for over a month was eventually saddled in the last trading session with a strong bullish candlestick, indicating a strong comeback of the bulls. Now going forward Nifty is likely to scale up to levels of 8857, which is 88.6 per cent retracement of down move from the higher levels. On the downside, the zone of 8680-8700 will offer good support for the Nifty. Daily RSI has scaled above levels of 60, which is positive for the Nifty.

Kotak Bank: Private sector lender Kotak Bank said it has received approval from the Reserve Bank of India (RBI) to sell less than 10 per of its stake to Canada-based pension fund CPIIB.

Tata Motors: Tata Motors has essentially become a Jaguar driven company in the last few quarters. Its domestic business has been negatively hit by the diesel ban and greater competition in the automobile space. The company is betting on defence in a big way to expand its order book and its total domestic revenues. Tata Motors already has a robust pipeline of defence orders this year and its turnover from defence is likely to double this year.

Motilal Oswal Financial: Motilal Oswal Financial Services said it has acquired over 2.45 crore shares in subsidiary Aspire Home Finance Corporation (AHFCL) for about Rs 28 crore.

DLF: India’s largest realty firm DLF said it has shortlisted few potential investors to sell promoters stake in rental arm and expects the proposal deal, estimated at Rs 12,000 crore, to be signed by early October.

Ultra Tech Cement: The Reserve Bank has allowed foreign investors to invest up to 30 per cent in Birla group's Ultra Tech cement.