Index Trends And Stocks In Action For January 20, 2014
Indian Equity markets which ended modestly lower on Thursday ended on miserable note on last trading day of week, with traders and investors preferred book profit and stay light as Nifty is facing strong supply at higher levels. The Midcap and Small cap stocks continued their downward journey. Breadth was also on negative side. In our last write up we mentioned that Nifty would fail in this attempt to cross levels of 6350-6360, this was backed by technical factors like RSI which failed to cross 60 level mark and there was potential reversal candlestick pattern formed on Thursday after strong rally. We mentioned importance of level of 6290 and below this 6250 was our first support level and Nifty made low around 6246 and what we witnessed was in line with our expectation. Nifty on daily chart has formed a potential evening star candlestick pattern which is a bearish reversal pattern that occurs during an uptrend. If we look at daily chart we almost took 6-7 trading session to climb above 21-day EMA which is an important short term moving average to determine the trend, but now we are hovering around 21-day EMA in just two trading session so this suggest that as Nifty approaches to levels of 6350 we had abrupt spike in selling force. If we break this 21-day EMA in next trading session than we might head to 6200-6160 levels in short term. For intraday Nifty has strong resistance around 6290-6330. On downside strong support is around 6220 and 6180.
Biocon (BSE Code: 532523) introduced CANMAb (150mg/400mg), a biosimilar trastuzumab for the treatment of HER2-positive metastatic breast cancer in India. The drug is developed jointly by Biocon and Mylan under a global partnership. The stock is likely to witness some buying interest in today’s trading.
Aurobindo Pharma (BSE Code: 524804) has signed a binding offer to acquire commercial operations in seven Western European countries from Actavis plc. Closing of the transaction is conditional on certain antitrust approvals and completion of employee consultation processes. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo’s front-end operations into five segments viz. generics, prescription products, over-the-counter products, hospital products and generics tenders with approximately 1200 products and an additional pipeline of over 200 products. The stock is likely to trade with a positive bias in today’s trade.
Light commercial vehicle (LCV) manufacturer SML Isuzu (BSE Code: 505192) is looking to increase its market share in the segment to 10% by March 2015. The maker of buses, trucks and vans launched its XM series of vehicles in the 10 to 13 tonne range in the National Capital Region and said it would explore new markets in Africa to boost exports. The stock is likely to remain in limelight in today’s trade.
Having reversed the falling output at KG-D6, Reliance Industries (BSE Code: 500325) and its partner BP plc will quadruple production at the eastern offshore fields to around 50 million standard cubic meters per day by 2020. With addition of a well this month jacking up output by 2.5 mmscmd to 13.7 mmscmd, RIL-BP is repairing shut wells that will help further raise output to 16 mmscmd. The stock may trade with a positive bias in today’s trade.