Index Trends And Stocks In Action September 19, 2014
After opening on a slightly on pessimistic note, the Indian market bounced back and kept on surging higher and higher with all round buying witnessed on the D-street. Sentiment got a boost after the FED reassured that the interest rates would be kept near zero for a considerable time. The nifty index hit a century and ended above 8100 mark. Couple of trading session ago it looked like the bull party has come to closing stages as most of the momentum oscillator were hinting, but in today’s session the bulls caught the bear napping and the bulls reclaim 8100 mark. In our last write up we mentioned 7920 would be an important support and once bulls get past level of 8030 it will see good short covering rally which will take index up to levels of 8100, so this was in line with our expectation. If we analyze last three candlesticks on daily chart we could see higher bottom sequence and this is good sign for the bulls. Going forward the upward momentum is likely to continue and the level of 8148 would act as a resistance for the bulls. If this level is cleared than next resistance would be around level of 8180. On downside 8050 would act as support zone and next support around level of 8015.
India Value Fund, a India-focussed private equity fund, has picked up a 10% stake in Syngene, the research services subsidiary of publicly held Biocon (BSE Code: 532523) at a valuation of Rs 3,800 crore. IVFA, through its funds Silver Leaf, is acquiring this stake hardly a week after, Biocon gave an exit to its earlier private equity investor - GE Capital - in Syngene at a valuation of Rs 2,800 crore. The stock may trade with a positive bias in today’s trade.
NMDC (BSE Code: 526371), country's biggest iron ore producer which had acquired an additional 30% stake in Australian firm Legacy Iron Ore, company said it will commence mining there in a year or two. NMDC in 2013-14 had produced nine million tonnes in Karnataka and aims to increase its production to 10.5 million tonnes or more in FY15 at their Donimalai and Kumraswamy mines. The stock may remain in focus in today’s trade.
The Delhi High Court today asked the pharmaceutical companies, including Novartis India (BSE Code: 500672) and Cipla (BSE Code: 500087), to hold a meeting with the union government and try to resolve the issue of implementing the revised drug pricing. The court has fixed the matter for hearing on October 30. These stocks may remain in focus in today’s trade.
CESC (BSE Code: 500084) will be a meeting held on September 22, 2014, inter alia, for considering a proposal for raising equity aggregating up to US $150 million on private placement basis and on such terms and conditions as may be decided in due course. The stock may remain in focus in today’s trade.