Index Trends And Stocks In Action January 08, 2015

The Indian market oscillated between positive and negative zone in yesterday’s trading session. Buying was seen in heavyweights like Hindustan Unilever and Reliance Industries which led some support to market. On other hand ICICI Bank and ITC were the major laggards. In our last write we mentioned nifty has strong support in zone of 8065-8085, nifty made low of 8065 and bounced back up to levels of 8120-8130. So this was according to our anticipation. The index has formed a potential reversal candlestick pattern around 100-day EMA support and index has been supported by this moving average many times in the past. One more positive takeaway is that RSI is holding up levels of 50. On upside 8135-8195 is likely to act as a major resistance level for index. If bulls sustain above 8195 levels it will open for smart rally up to levels of 8330. For now we anticipate market to trade in range of 8035 on downside and upside up to levels of 8195.

Shares of Berger Paints India (BSE Code: 509480) and Eco Friendly Food Processing Park (BSE Code: 534839) will turn ex-stock split on the bourses on Today. While Berger Paints will reduce its face value from Rs 2 to Rs 1, Eco Friendly Food will cut its face value to Rs 1 from Rs 10. That means, Berger Paints will start trade in the range of Rs 210-220, while the BSE-listed Eco Friend will be in Rs 50-60 range. However, those who are buying the shares of these companies from Today will not be entitled to receive the ex-stock split shares.

Shares of 8K Miles Software Services (BSE Code: 512161) will be in focus on Today, as the cloud computing company announces its results for the December quarter. The stock has been active on the bourses and one of the strong performers in 2014 by jumping seven-fold. For the second quarter ending September, the company's net zoomed 275% to Rs 0.15 crore. The performance will be keenly tracked, as domestic funds entered the company's stock during the last quarter for the first time.

In a breather to the fertiliser manufacturer Southern Petrochemical Industries Corporation (BSE Code: 590030), the Union Ministry of Chemicals and Fertilisers has informed the company that it would be allowed to produce Urea using feed stock Naphtha for a period of 100 days from the date of Notification, which is January 7, 2015.