Index Trends And Stocks In Action For April 16, 2014

Indian Equity market extends previous session losses, with weak industrial output data and a report showing boost up in WPI prompting traders to press sell rate sensitive. The broader market traded weak; however stocks from information technology sector had good outing courtesy to Infosys for presenting better than expected result.  The Nifty index closed at 6733 with loss of 43 points. In our last write up we mentioned on downside Nifty has major support around 6710 and our anticipation of this support level had been fairly accurate as in intraday trade Nifty made low of 6711 and bounced.

Nifty on daily chart has formed bearish candlestick which has engulfed previous day’s candlestick. Now going forward Nifty has strong support in range of 6680-6690, if bulls manage to hold on to this level we expect a bounce back up to levels of 6770, if Nifty sustains above this level than bulls will be in driver’s seat. In case bulls fail to hold on to this support level than it will be a bear bash up to levels of 6655 and next level would be 6628.

Ashok Leyland (BSE Code: 500477) launched Partner, a light commercial vehicle (LCV), priced in the range of Rs 8.73-9.29 lakh (ex-showroom Delhi). After the commercially successful Dost and the recently launched Stile, Partner is the latest offering from the Ashok Leyland-Nissan Joint Venture. The LCV, which comes with various features including air-conditioning, focuses on driver comfort and sports car-like interiors. The stock may remain in focus in today’s trade.

Cadila Healthcare (BSE Code: 532321) Zydus Pharmaceuticals have entered into a settlement agreement with Depomed Inc pertaining to patent infringement. The case is related to Depomed's neuropathic pain relieving drug 'Gralise'. Cadila Healthcare and Zydus Pharmaceuticals announced a joint statement that "they have entered into a settlement agreement with Depomed" regarding the patent infringement litigation related to Gralise 300 mg and 600 mg tablets. The stock may remain in limelight in today’s trade.

Glenmark Pharmaceuticals (BSE Code: 532296) has got USD 5 million as a milestone payment from Sanofi for a new drug to treat chronic auto-immune disorders, taking total payments received till date to USD 55 million. The milestone payments are part of a deal worth USD 613 million, which the Mumbai-based firm signed with the French firm in May 2011, for Sanofi to develop the new drug. The stock may remain in action in today’s trade.

Engineering major Punj Llyod (BSE Code: 532693) has won Rs 3,254-crore contract for constructing infrastructure facilities in in a Libyan city. The project involves design and construction of the storm and sewer network, water network, telecommunication and power distribution network, natural gas network, street lighting and road works including landscaping of parks and green areas. The stock may witness buying interest in today’s trade.