Index Trend and Stocks in action September 28th, 2015

The Indian Benchmark Indices ended the eventful September derivative expiry on a positive note; although the gains were capped due to the long weekend and Reserve Bank of India’s policy meet which is due on Tuesday. On the daily chart the index has a cluster of resistance in the zone of 7910-7940, first 21-day EMA which is an important short term moving average is placed at 7910 and second the level of 7930 is a strong supply zone for the index as it has acted as a turning point in the past.  Now only if the index manages to close above this resistance zone, we could see a fresh buying in the market. On the other hand the level of 7760 is an important support for the index. If this support level is breached, expect test of 7660-7580 in the immediate short term.

SPARC: Sun Pharma Advanced Research Company announced that the U.S.Food and Drug Administration (USFDA) has issued a Complete Response letter (CRL) to its New Drug Application (NDA) for Elepsia XRTM (Levetiracetam extended-release tablets 1000 mg and 1500 mg).

Lanco Infratech: Big relief for cash crunch company Lanco Infratech, three groups of lenders approved cost overruns of almost 30 per cent for four power projects, enabling work on them to resume after more than two years. The company has also secured fuel supplies for power plants that will increase its generation capacity.

Videocon: The Videocon group is set to sell a part of its 82% stake in its general insurance joint venture with Liberty Mutual. The US insurance gigantic Liberty will increase its stake to 49% from 18%. The joint venture is valued at Rs.8, 000 crore and the stake sale will help Videocon to reduce its debt which was at around Rs.22, 500 crore as of March end.

Maruti Suzuki: Clouds of trouble lingering over Maruti as temporary workers at Manesar plant protested in front of factory demanding hike in wages, a day after the management announced an average wage settlement of Rs 16,800 per month for its permanent workforce over three years.