Index trend and stocks in action February 10, 2016

Taking cues from the overnight losses in the US Markets the Indian Market extended its losses for the second consecutive trading session. The index has breached its important support level of 7350 and has closed below this level. On the daily chart the index has formed a downside gap. Now going forward immediate support for the index is placed around levels of 7240 and if this support is breached it’s likely to test levels of 7140 in the near term. On the upside, the gap will act as a stiff resistance for the index.  If the index sustains above the gap it’s likely to continue its upward momentum.  The daily 14-day RSI has slipped below levels of 40, now if it breaks below levels of 35 the downward momentum will accelerate.

Dr Reddy Laboratories: India’s second largest drug maker Dr Reddy Lab reported a 1 per cent rise in the net profit for the third quarter ended 31 st December, 2015 owing to improved sales in North America, India and Europe. Net profit rose to Rs 579 crore and total sales were up by 3.2 per cent at Rs 3968. However, both the top-line and the bottom line were below the street expectation.

PNB: State owned bank PNB announced its December quarter earning.  Profits fell by 93 per cent for the quarter ended 31 st December, 2015. There was a 100 per cent rise in provisions for doubtful debts. Its gross NPAs were at 8.47 per cent compared to 6.36 per cent in the corresponding period last year. Similarly, its net NPAs also went up during the period from 3.99 per cent to 5.86 per cent. Provisions for doubtful debts shot up 100 per cent from Rs.1882 crore to Rs.3775 crore during the period.

Raymond: Diversified group Raymond has informed that its Board has approved raising of up to Rs 100 crore through issuance of non-convertible debentures (NCDs) on private placement basis.

Aurobindo Pharma: Aurobindo Pharma reported a consolidated net profit at Rs 535 crore for the third quarter ended 31 st December, 2015. Net sales during the period stand at Rs 3,432.08 crores. In the corresponding period of the previous fiscal the sales were 3,142.46 crore.

SRF: The Company has informed that it has claimed Rs 80 crore as damage from the insurance company for its plant due to recent floods and rains in Tamil Nadu.