Index Trend and Stocks in action October 06, 2015

The benchmark indices opened with a gap up on the back of strong global cues and maintained its upward momentum throughout the session. The Nifty index managed to close above its important psychological level of 8100 extending its gains for the fourth straight session. On the daily chart the index has managed to break the neckline resistance of the inverted head and shoulder pattern, which is a bullish reversal pattern. Now the index is approaching to fill the gap which was created in the last week of August, 2015. On the higher side hurdle for the bulls would be around levels of 8220 and 8280. On the downside 8065 is crucial support levels. A lot will depend how the nifty index behaves around the levels of 8220-8280, if it manages to move higher than it would be confirmed that the trend has reversed and the trend is in favour of the bulls. A failure to cross these levels may find the index seeking lower levels once again.

Cadila Healthcare: Shares of Cadila Healthcare will turn ex-split on Tuesday. Cadila proposes to split the face value from Rs 5 to Rs 1. So, the stock now trading at around Rs 2,082, would trade in the range of Rs 410-420 from Tuesday. In the F&O section, it will have a revised market lot of 1,500 units, up from 300 now. Options will also reflect the split.

IL&FS Transportation: Shares of IL&FS Transportation Networks will remain in focus on Tuesday, which is the last day for investors to participate in the proposed Rs 750-crore rights issue. The company proposes to issue 8.22 crore equity shares on rights basis at an issue price of Rs 90 apiece. The entitlement ratio is 1:3 - one equity share to be issued on rights basis for every three shares held as on record date, which is October 8. The stock will turn ex-rights on Wednesday.

IDBI Bank: IDBI Bank to seek shareholder nod to issue 29.61 crore shares at Rs 75.28 per share to government on preferential basis on 4^th November, 2015.