Index Trends And Stocks In Action August 24, 2015

The Indian Benchmark Indices witnessed a sharp sell-off for the second consecutive session on back of a crash in the global markets. The nifty index ended below its crucial mark of 200-day EMA i.e. 8330. However, there was some respite for the market in the last hour of trade as select heavyweight came to rescueand helped benchmark indices to trim losses. On the daily chart the Nifty index has formed a Doji candlestick pattern. Now going forward important support for the index stands near levels of 8190 and 8080. On the upside the level of 8330 will act as a stiff resistance for the market. If we happen to close above the level of 8330, we could see a reversal in trend and short covering taking place which will lift indices higher up to levels of 8420-8500 mark.

Indian Oil Corporation: The government of India plans to sell a 10 per cent stake in IOC at Rs 387 a share. The floor price has been set at 2 per cent discount to Friday’s closing price. The government needs mammoth issues to meet its ambitious disinvestment target of Rs 69,500 crore but has met with diminutive success this fiscal. Last year the ONGC issue had to be cancelled due to weak Oil prices globally. IOC will continue to benefit as long as crude prices remain low. The IOC OFS is scheduled for Monday 24^th August. The OFS is likely to raise around Rs 9000-9500 crore for the government.

Aurobindo Pharma: Hyderabad based AurobindoPharma is targeting revenue of over USD 3billion (over Rs 19,800 crore by 2017-18 and plans to expand it basket with drugs to treat Cancer and hormonal diseases, as also various nutraceutials and over the counter (OTC) products.

GAIL: State-run gas utility GAIL is in talks with Iran to revive a USD 22 billion LNG deal which was in pipeline for over a decade. This is the cheapest deal ever struck by an Indian firm. An official response from Iran is still awaiting.