Index Trends And Stocks In Action July 06, 2015

The Indian Market clocking its highest closed in one month after taking a breather in the previous trading session. Technically, the index opened in positive territory and traded in a narrow range of 20-30 points as market participants were refraining from carrying forward position due to the Greece debt crisis outcome on weekends. On the daily chart the index formed a Bullish Engulfing candlestick pattern, but magnitude is not that strong. Going forward with strong resistance point for the index is around 8500-8535 levels. If the indices open with gap on the back of positive outcome of the Greece Debt crisis and close above this resistance zone expect this rally to stretch upto levels of 8800 in the medium term. On the downside, if index breaches 8300 level on a closing basis expect correction up to levels of 8180-8050 in the medium term.

Aditya Birla Chemicals, Grasim: Aditya Birla Chemicals has received approval of shareholders for merging itself with Grasim Industries. The two companies of Aditya Birla Group are being merged in order to consolidate similar businesses under one roof.  Grasim Industries' board had approved to give Aditya Birla Chemicals shareholders one share of Rs 10 each of Grasim for every 16 shares of Rs 10 each held in Aditya Birla Chemicals. Grasim had said that it would issue 14.62 lakh new shares, which will increase its share capital to Rs 93.31 crore.

Tilaknagar Industries: Kishore Chhabria, owner of Allied Blenders and Distillers (ABD) and Amit Dahanukar, Chairman and MD of Tilaknagar Industries are on the verge of finalizing a deal that would grant Chhabria 55% stake in the cash-deprived Tilaknagar, known for brands like Mansion House brandy, Senate Royale whisky and Courrier Napoleon brandy. Dahanukar is likely to ask for Rs 50-60 per share, a substantial premium over Tilaknagar Industries' CMP of Rs 17.70. This will value the Dahanukar stake between Rs 340 crore and Rs 410 crore.

Arvind Remedies: Arvind Remedies board to meet on July 11 to consider proposal for investment by a potential investor

Federal Bank: Federal Bank board to consider allotment of bonus shares on July 10