Index Trends And Stocks In Action September 12, 2014
The Indian market failed to retrain early gains and ended on a negative note on Thursday, extending losses to a third successive session as traders and investors appeared a bit reluctant to build up positions ahead of some crucial economic data, due tomorrow. Markets continue to drift downward for the third day in a row and this has led to formation of potential Three Black Crows candlestick pattern on daily chart of nifty. This pattern is seen after an uptrend. It consists of three consecutive declining black candles. Going forward if nifty breach its important support of 8020, it’s likely to test levels of 7970 and than 7920. On upside 8130 would continue to act as a big hurdle for the bulls.
Sun Pharmaceutical Industries (BSE Code: 524715) is looking to get shareholders' approval to raise qualified institutional placement (QIP) worth Rs 12,000 crore at its 27th AGM to be held by the end of September. The purpose behind raising the fund is not known. Last year, there were reports that Sun Pharma was in talks to buy Sweden's Meda AB for a sum between $5 billion and $6 billion, to boost its generics business in developed markets. The stock may remain in focus in today’s trade.
Equity shares of Snowman Logistics, a subsidiary of Gateway Distriparks, will be listed on Friday on the BSE and the NSE. The company has fixed the issue price at the higher end of the price band of Rs 44-47 a share. The issue had received strong response from investors, at an oversubscription of 60 times. On the first day, trading in the Snowman Logistics stock will take place under the compulsory delivery mode only. The stock may remain in focus in today’s trade.
Steelmakers like Tata Steel (BSE Code: 500470) and Steel Authority of India (SAIL) (BSE Code: 500113) are heading for fresh trouble in the wake of Jharkhand state Government ordering closure of 12 of the 17 working iron ore mines, including the mines controlled by these two steel giants. Both companies have 30-40 days of ore inventory at their plants. However, if the ban continues beyond mid-October, external purchase of iron ore could raise the production cost for both steelmakers. These stocks may remain in focus in today’s trade.