Index Trends And Stocks In Action September 16, 2014

The Indian market ended lower on Monday with the Nifty just managing to close above the 8000 mark. Sentiments were hit after the Industrial activity, as measured by the index of Industrial (IIP), slipped to 0.5% in the month of July.  Even shrinking inflation number which were released during market hours, was unable to lift the sentiment on the street. WPI stood at 3.74% to a 5-year low beating market expectation. Nifty managed to close near to its 15 day EMA and neckline of inverted head and shoulder pattern. Going forward 7990-8030 will act as a strong support, once bears pierce this level we could see a correction up to level of 7880-7830. On upside 8090 and 8130 will act as resistance for the bulls.

Cipla (BSE Code: 500087) signs licensing pact with Gilead Sciences, Inc. for manufacturing and distributing of Sofosbuvir mono, Ledipasvir mono, the fixed-dose combination of Ledipasvir/Sofosbuvir with each other and the combination of Sofosbuvir or Ledipasvir with other active substances, for the treatment of Hepatitis C. Under this licensing agreement, Cipla will be permitted to manufacture and market Sofosbuvir, Ledipasvir in 91 countries including its home markets India and South Africa under Cipla's own brand names. It also covers countries such as Egypt which has a high incidence of Hepatitis C. The stock may trade with a positive bias in today’s trade.

Tata Motors’s (BSE Code: 500570) global sales (including Jaguar Land Rover) declined 10% to 73,524 units in August from a year ago. Sales were dragged down by a 19% contraction in Tata Motors’ commercial vehicles and the Tata Daewoo range, for which the combined sales fell to 30,536 units from 37,983 units. While overall passenger vehicles sales were flat at 42,988 units against 43,474 units a year ago, Tata Motors’ branded passenger vehicles in August were down 10% to 11,338 units. Sales of Jaguar Land Rover rose marginally to 31,650 units against 30,895 units last year. The stock may trade with a negative bias in today’s trade.

Hero MotoCorp (BSE Code: 500182) is likely to sign a MoU with the Andhra Pradesh government on Tuesday for setting up a motorcycle manufacturing plant in the state. The investment likely to be committed by the company is around Rs 2,200 crore. The stock may remain in focus in today’s trade.

Kotak Mahindra Bank's (BSE Code: 500247) proposed Rs 459 crore deal to acquire 15% stake in commodity bourse MCX (BSE Code: 534091) on Monday got the approval of fair trade regulator CCI, making the financial sector conglomerate a major player in exchange business. Both the stock may remain in focus in today’s trade.