Index Trend and Stocks in action October 05, 2015

The benchmark indices managed to end in the green for third straight session. However, profit taking was seen on the back of truncated week. On the daily chart the index formed a bearish candlestick; this indicates bull’s momentum has fizzled. Now going forward the level of 8065 is an immediate resistance which needs to sustain on closing basis for any further momentum on the higher side. On the downside important support for the index is placed at 7880 levels and if this level is breached next important support is 7820. The daily momentum oscillator has reversed from the 60 levels and it’s moving in a downward direction, this indicates momentum on the upside is diminishing. Overall, we expect the index to move in range and any move above levels of 8065 will take the index up to levels of 8140-8220.

Chennai Petroleum Corporation: Country’s biggest insurer LIC has reduced its stake in Chennai Petroleum Corporation to 5.04 per cent by selling 2 per cent stake in the company.

Maruti Suzuki India: Carmaker Maruti Suzuki India’s board has sanctioned a contract manufacturing agreement for a period of up to 30 years proposed to be signed with an arm of parent Suzuki Motors Corp (SMC) for the upcoming plant in Gujarat.

NMDC: NMDC has slashed prices of iron ore by over 50 per cent to Rs 1460 per tonne on the back of subdued iron ore demand. Globally, there is a surplus of iron ore supply and prices are going down. Also, the fall in demand from China has applied pressure on the price of these commodities.

Hero Motocorp: Insurance major LIC has increased its stake in Hero Motocorp to 7.16 per cent as on September end as compared to 4.77 per cent for the quarter ended June.