Index trend and stocks in action February 22, 2016

The Indian market witnesses a negative opening, however, the index recovered from the day’s low and hovered around 7180-7200 levels for the most part of the day, but in the final hour bulls saw some momentum and index ended above 7200 mark. Currently, the index is facing strong resistance or supply in the zone of 7220-7240 as its 50 per cent retracement of the down move from the levels of 7600.45 to 6869. Now going forward if bulls need to continue its momentum on the upside, it needs to sustain above this supply zone of 7220-7240. In that case index is likely to test levels of 7300-7330 on the upside which is also 61.80 per cent retracement of the down move from levels of 7600.45 to 6869. There is another pattern unfolding on the daily chart of the index which is AB=CD, the AB leg is completed and the projection of CD led suggest index will test 7270 and 7330. The 14-day RSI is quoting around 45 levels and as long as it stays above 40 levels it is positive for the index.

ONGC: State-owned ONGC has secured approval from the green panel for its Rs 1752 crore proposed oil drilling project in Gujarat. It will involve drilling a total of 406 oil wells along the Gulf of Cambay.

Divis Laboratories: Drug firm Divis Laboratories has informed that the US health regulator has conducted a successful inspection of is Unit-2 facility at Visakhapatnam.

Maruti Suzuki India: India’s largest carmaker by sales has informed that it has suspended operations at its northern auto plants after protests disrupted the supply of some components.

IDBI Bank: State owned IDBI Bank said it plans to raise up to Rs 1,500 crore by selling stake to Life Insurance Corporation (LIC) by preferential issuance of share to insurer.

Aditya Birla Nuvo: Aditya Birla Nuvo has said that the company jointly with Idea cellular has incorporated a new subsidiary for the aforesaid purpose in the name and style of ‘Aditya Birla Payment Bank’.

Lupin: Lupin and Gavis Pharmaceuticals LLC, which the Indian firm announced to acquire in at $850 million deal last year, have agreed to divest two generic drugs as part of the US Federal Trade Commission’s (FTC) requirement to complete the transaction. The companies have agreed to sell rights and assets for two generic drugs to New Jersey based G&W Laboratories in order to settle charges that Indian firm’s proposed acquisition would likely are anti-competitive.

Godrej Properties: Godrej Properties is targeting a sales revenue of about Rs 1,500 crore this year through monetisation of its commercial assets in Mumbai, Kolkata and Chandigarh.