Index Trend And Stocks In Action December 09, 2015

The downtrend continued in the market as benchmark indices witnessed yet another decline of about 1 per cent. After a gap down start, the index tried to recoup morning losses. However, it failed to gather any momentum on the upside and moved sidewaysfor the most part of the day. The momentum on the downside accelerated in the later part of the session.  On the daily chart index has formed a “Head and Shoulder” pattern, which is a bearish pattern. The neckline for this pattern is placed at levels of 7670; once this support is breached expect a correction of 100-200 points in index in the short term. So key support for the index is around 7670 and next support is around 7600. On the upside levels of 7745 will act as a strong resistance for the index. The daily 14-day RSI has formed a positive divergence; this suggests that we might see a pullback in the market.

NBCC: State-owned NBCC said it bagged projects worth Rs 192.74 crore in the month of November, 2015. It has bagged an Rs 54.20 crore contract from construction of National Institute of Disaster Management (NIDM) campus at Rohini, Delhi. NBCC got aRs 138.54 crore EPC contract from Bharatiya Rail Bijlee Company, an arm of NTPC for the balance work of construction of residential quarters and associated civil and electrical works and community facilities among others at Nabinagar, Bihar.

Dr Reddy’s Laboratories: Dr Reddy’s Lab has submitted a response to the US Food and Drug Administration (FDA) on a warning letter it has received in the last month.

Rallis India: Amanasa Holdings has sold 3.1 per cent stake in Tata group firm Rallis India for about Rs 104 crore through open market transactions.

Indian Infoline: Canadian investor PremWatsa’s Fairfax India Holding has acquired an additional 21.85 per cent stake in financial firm IIFL holdings for Rs 1,341.37 crore through an open offer.