Index trend and stocks in action October 25, 2016

The Indian benchmark indices opened on a positive note and made an attempt to move up amid a choppy trend during early to mid-session. However, profit booking was seen at higher levels and Nifty showed weakness from higher levels but it managed to close above 8700. On the daily chart Nifty has formed a ‘Doji’ Candlestick pattern; usually formation of doji candlestick pattern after a reasonable pullback indicates that prices are likely to reverse. Now going forward the zone of 8745-8760 will continue to act as a stiff resistance for the Nifty. A decisive move above this zone may open up for up-move up to levels of 8810-8830. On the downside, the zone of 8610-8630 will act as a strong support zone for nifty.

Aditya Birla Nuvo: Foreign Institutional Investors/Registered Foreign Portfolio Investors can under the portfolio investment scheme (PIS) now invest up to 30 per cent of the paid up capital of Aditya Birla Nuvo Ltd., the Reserve Bank of India said in a notification. The earlier limit was up to 24 per cent.

Reliance Capital: Reliance Capital has reported a consolidated net profit of Rs. 253 crore for the fiscal second quarter, up one per cent compared with the corresponding period a year ago, as it made a provision to beef up reserves in general insurance business. Total income has increased to Rs. 4,926 crore in the July-September quarter of the current fiscal year, more than double from Rs. 2,372 crore in the year-ago period.

Idea Cellular: Idea Cellular saw a 58 per cent fall in profits to Rs.91 crore even as revenues fell marginally by 2 per cent for the quarter ended September 2016. With an increase in rural subscribers, there is a fall in the ARPU for Idea. Additionally, the competition from Reliance Jio has resulted in Idea cutting its data tariffs drastically to be competitive in the market. Even the EBIT margins of Idea have contracted by 187 bps for the quarter of September.

Tata Group: Tata Group stocks will be in focus as Cyrus Mistry gets replaced as chairman. RatanTata to take over as interim chairman.

Sasken Communication Technologies: The board of directors of Sasken Communication Technologies will meet on October 27 to consider a buyback of fully paid-up equity shares, and decide the quantum and mode of acquisition and other related matters.

Jyothy Labs: Zero Coupon bonds worth Rs 400 crore have been revised from ‘CARE AA-‘ to ‘CARE AA’.