Index trend and stocks in action July 28, 2016
Indian benchmark indices started off the session on a positive note and moved up sharply during the first hour of trading session. However, markets were not able to sustain at higher levels, as profit booking dragged market lower, and at one point market shed all the gains, trading in negative territory. But the Nifty ended the session with marginal gains. On the daily chart Nifty managed to pierce the ‘Tweezer Top’ high and registered a new swing high of 8665, but Nifty was not able to sustain at higher levels. On the daily chart Nifty has formed a ‘Spinning top’ Candlestick pattern. This pattern is formed where the real body is small despite a wide range of price movement throughout the trading day. Now going forward important support for Nifty is pegged at 8570 levels and breach of this support will open gates for correction up to levels of 8500. On the upside, the zone of 8645-8665 will act as a resistance zone. Today being July series F&O expiry we expect market to be volatile.
Lupin: Lupin has secured a tentative approval for its generic Lexiva tablets. The Lexiva tablets are supposed to treat HIV infection in the US markets. The product was filed from the Goa Formulations unit which had been on the FDA radar for some time in the past. Lexiva tablet has US sales of nearly $716 million.
Bharti Airtel: Bharti Airtel saw its quarterly profits surge by 10.8%, beating analyst expectations by a margin. Revenues for the quarter were up by 2.4% sequentially at Rs. 25, 573 crore. The core African operations saw revenues falling by 3.12% at Rs.6259 crore for the quarter. Interestingly, operating profits increased by 4.4% to Rs.9591 crore even as the OPM expanded by 70 basis points to 37.5%. The average revenue per user for the India business is at Rs.196, up marginally from Rs.194.
MCX: Cabinet has approved the hike in foreign direct investment (FDI) limit for individual companies in domestic stock and commodity exchanges to 15 per cent from 5 per cent.
Tata Steel: Tata Steel said the Quebec government will invest Canadian $175 million in its joint venture firm’s direct shipping iron ore project (DSO project).
Sun Pharma: Sun Pharma has signed an agreement with RPG Life Sciences to divest seven prescription brand drugs from its health supplements segment for Rs 41 crore. The seven brands, owned by Sun Pharma and its subsidiaries, include drugs used for the treatment of respiratory-tract infections, urological disorders and cardiovascular diseases, as per the company’s press release.