Index trend and stocks in action July 25, 2016

The Indian benchmark indices got off to a soft start as they showed signs of consolidation in early trade, since traders remained influenced by the intimidating sentiments prevailing in the Asian markets. Short covering was seen post afternoon session and indices ended with marginal gains. On the daily chart Nifty has formed a reversal candlestick pattern ‘Hammer’. This candlestick was formed near the support area of 8470-8480; hence, it indicates that the bulls are back in action. Now going forward, Nifty will face resistance in the zone of 8570-8600. On the downside, major support is placed around levels of 8470. If this support zone of 8470 is breached it will open gates for down move up to levels of 8400. Daily RSI is quoting above levels of 60 which is positive for Nifty.

Coal India: Coal India will not revise its share buyback offer price of Rs 335 per share even if the stock crosses the offered price at the bourses. This would mean the government, its majority shareholder, will earn the entire Rs 3,650 crore earmarked for the offer.

Gujarat Fluorochemicals: Gujarat Fluorochemcials has entered into an agreement for sale of its stake in its joint venture company Xuancheng Hengyuan Chemical Technology Company limited, China.

Mandhana Industries: Rating agency Care has downgraded Textile Company Mandhana Industries' long term and short term bank facilities worth Rs 967.13 crore to ‘default’ grade from ‘BBB+'.

IOC: Indian Oil Corporation (IOC) is in talks to buy debt-laden Gujarat State Petroleum Corp’s (GSPC) stake in the under construction Rs 4500 crore Mundra LNG import terminal in Gujarat.

Vedanta & Cairn India: Vedanta and Cairn India have sweetened the deal for shareholders to make way for the merger of the latter with the parent company which has faced delays due to key shareholders expressing concerns over the valuations.

Havells India: Havells India has reported a 36.27 per cent increase in the standalone net profit at Rs 145.58 crore for the Q1 ended June 30, 2016.