Index Trends And Stocks In Action For August 01, 2014
Indian Equity market fell sharply on last trading session of the month, on account of lower rollovers seen in the Bank Nifty and the Nifty index. Selling pressure accelerated as the day progressed as Dow Jones Futures plunged over 100 points. Pharma and Realty stocks provided some breather for the market, but rest all the sectoral indices dragged the market lower. Nifty negated the intraday bounce back which happened on Wednesday.
But it did manage to hold and trade above the key support level of 7670-7680, which is a 21-day EMA and horizontal trend line support as well. RSI is still holding levels of 60; this is positive takeaway for the bulls. Going forward bull’s needs to defend its support of 7680-7670 level and if bulls failed to defend this level than gates for a good correction will be open in short term. On upside 7750 will act as a resistance and major hurdle is around 7820.
Cadila Healthcare (BSE Code: 532321) is responding to certain observations the US Food and Drug Administration (FDA) made after conducting a "product specific" inspection of its Moraiya manufacturing plant. The FDA expressed concerns over the manufacturing process of at least one product at Cadila's Moraiya facility in Gujarat. The stock may witness volatile trade in today’s session.
India's state-owned Oil & Natural Gas Corp (BSE Code: 500312) and Oil India (BSE Code: 533106) have submitted a joint bid worth about USD 1.5 billion to buy a stake in Murphy Oil Corp's Malaysian oil and gas assets. Arkansas-based Murphy, which has interests in oil and gas fields in Malaysia, Vietnam, Indonesia, Brunei and Australia, has invited bids for a 30% stake in its Malaysian assets. If successful, ONGC, India's largest oil and gas exploration company, will own a 20% stake in the assets, while Oil India would own the remaining 10 percent, said three sources involved in the process. The stocks may trade with a positive bias in today’s trade.
Steel major JSW Steel (BSE Code: 500228) has prepared a blue print to increase overall steel capacity to 40 million tonnes per annum by 2025 in order to retain market share of 13-14 per cent. The company has installed capacity of 14.3 million tonnes. The stock may remain in focus in today’s trade.