Index Trends And Stocks In Action September 17, 2014

The Indian market ended penetratingly lower for a second day in a row as traders indulged in some heavy selling almost across the board, ahead of the U.S Federal Reserve’s two-day monetary policy meeting. In our last write up we mentioned once the level of 7990-8030 is breached we are likely to witness correction of 100 points, so this was in line with our expectation. The index has managed to pierce and close below its short term moving average support i.e 15-day EMA and 20-day EMA this hints the short term trend of index has turned bearish and momentum oscillators after trading in positive for long time have entered into negative zone.  So signs of correction continuing are higher and we may see correction up to levels of 7800-7820 as this zone is major support for the index, however minor support is around levels of 7855. On upside 7980 and 8035 will act as a resistance.

Apollo Tyres (BSE Code: 500877) subsidiary in South Africa, has voluntarily initiated business rescue proceedings. It has appointed a specialist to re-structure its operations and to secure best value for all stakeholders. The evaluation by such specialist will decide the future course of action for the company in South Africa. The stock may remain in focus in today’s trade.

Aurobindo Pharma (BSE Code: 524804) has received final approval from the USFDA to manufacture and makret Amoxicilin for oral suspension. This Abbreviated New Drug Application (ANDA) was approved out of unit 12, semi-synthetic Penicillin facility in Hyderabad. The product has a market size of $ 19 million. The stock may trade with a positive bias in today’s trade.

Mahindra & Mahindra (BSE Code: 500520) is in advanced talks to buy PSA Peugeot Citroen's scooter business. However, the company would not comment on market speculation. Peugeot is a French carmaker. The stock may remain in focus in today’s trade.