Index Trends And Stocks In Action For April 10, 2014

Indian Equity market opened on firm note on back of firm trend in Asian peers. The bulls extended this firmness and guided the key indices Sensex and Nifty to new life time high. Banking index was in top gear and ended with more than 3% gains. Metal, Healthcare, Realty and Automobiles ended with handsome gains. In our last write up we mentioned Nifty is likely to resume its uptrend as Nifty managed to hold on to its strong support of 6650 and above 6730 fresh breakout will be seen. In today’s session as soon as Nifty crossed hurdle of 6730 it was one way rally up to 6800, so this was in line with our expectation.

After a 4-5 trading session consolidation and minor correction Nifty managed to resume its uptrend this is healthy sign. One more reason technically we still remain bullish and we expect this rally will continue further is that Nifty when it was in consolidation phase it dint breached its support of 6650. So this hints that the downside is limited and buying on dips is best strategy. Panic selling will trigger only if Nifty index breach level of 6650 on closing basis. For day trading important support for Nifty is around 6765 and next support around 6728. On upside resistance for Nifty stands at 6824 and next resistance is around 6845.

Lupin (BSE Code: 500257) has received final approval from the US health regulator to sell generic diabetes management drug Pioglitazone Tablets in the American market. Lupin said its US subsidiary, Lupin Pharmaceuticals Inc has received final approval for its Pioglitazone tablets from the US Food and Drugs Administration to market generic version of Takeda Pharmaceuticals USA Inc's Actos tablets. The stock may witness some buying activity in today’s trade.

Sun Pharmaceutical Industries (BSE Code: 524715) plans to begin phasing out sales of generic drugs branded as Ranbaxy Laboratories (BSE Code: 500359) products in the United States after completing a USD 3.2 billion takeover of its loss-making rival. Ranbaxy’s drugs sold in the United States will be gradually rebranded as Sun Pharma treatments as part of a strategy to turn around the company that is being bought from Japan's Daiichi Sankyo. Both the stocks are likely to remain in focus in today’s trade.

The government's approval to the proposal of HDFC Bank (BSE Code: 500180) for raising overseas shareholding limit to 67.55% may get delayed as Commerce and Industry Ministry is scrutinising all foreign investments made in the bank. The DIPP, which deals with foreign investment matters, is looking into each and every investment in the bank, including those through its parent entity HDFC to ascertain the actual quantum of overseas investment in the bank. The stock may witness volatility in today’s trade.

Ruchi Soya Industries (BSE Code: 500368) launched its refined sunflower oil “Sunrich” in Tamil Nadu, eyeing 15% of market share. With this launch the company intends to take their share for Sunrich in the sunflower oil category to 10% and then to 15% in next two to three years. Towards this initiative, the company planned to step up the marketing activities which include “tripling” of distribution network. The stock may remain in focus in today’s trade.