Index Trends And Stocks In Action December 10, 2014

The Indian markets saw a crash of more than 1 percent for second consecutive session. After a dismal start, market remained choppy for first half and selling intensified in second of half of trading session after Chinese stock market crashed over 5 percent.  Technically, nifty index moved in line with our expectation, index started sliding once it breached its important support of 8410 and it almost visited our next important support of 8330. Correction which has started from level of 8627 has been one side and faster in nature; in past such types of correction has given early hints for deeper corrections. However the band of 8280 and 8260 will act as important support for index as its 38.2% retracement support and 50-day EMA support. RSI is hovering around important levels of 46 and if this slips below 40-odd levels be caution.

Cadila Healthcare (BSE Code: 532321) has become world’s first company to launch the biosimilar of Adalimumab, the fully human anti-TNF alpha monoclonal antibody, for treating rheumatoid arthritis and other auto immune disorders in India. This is 7th biosimilar launch and there will be two more next year in the space of cancer. The company is looking at a business of about Rs 200 crore from this drug in next three to five years.

RIL (500325) has decided to sell a 49% stake in the textiles business to Chinese textile firm Shandong Ruyi Science and Technology Group (Ruyi) for an undisclosed sum. RIL will hive off its textiles business into a new joint venture, in which it will have a 51% stake and the rest will be held by the USD 3 billion Ruyi Group.

IL&FS Engineering and Construction (BSE Code: 532907) has withdrawn its proposed rights issue application, through which it was looking to raise up to Rs 300 crore. The company had filed its draft papers with the Securities and Exchange Board of India (SEBI) in March this year.