Index trend and stocks in action March 08, 2016

After witnessing a scintillating rally over the last three trading sessions, the index took a breather and moved in a tight band on Friday and ended the session on a flat note. On the daily time frame the index has formed a small body candle which resembles a ‘Hanging Man’ and this candle is indicative of a temporary halt in the upside momentum. Friday’s trading session had an opening upside gap and this gap was filled on Friday itself. But the gap which was created on 2nd and 3rd remains unfilled. Now going forward the index has a strong support around levels of 7400. On the upside the area of 7570-7600 will go about as a firm resistance. The momentum oscillator RSI has touched the upper level of 60. Presently, if the RSI keeps on moving upwards and crosses levels of 65, it will add further glitter to the momentum.

HPCL: State-owned Hindustan Petroleum Corp (HPCL) plans to invest Rs 45,000 crore by 2020 in expansion of its Mumbai and Visakhapatnam refineries as well as augmenting its marketing infrastructure.

Ajanta Pharma: Ajanta Pharma has received final approval for its generic version of acute migraine pain relief drug, almotriptan malate tablets from the US health regulator.

Jain Irrigation: Jain Irrigation has secured approval from the CCI to sell its stake worth Rs 792 crore in the company as well its food subsidiary. The buyer is Mandala Capital, an agro financing firm.

Tata Motors: The home-grown auto Major Tata Motors is moving fast on the defence manufacturing front. It has tied up with Bharat Forge and General Dynamics for the Rs 50,000 crore infantry combat vehicle project. This is part of the Make in India campaign where a chunk of the defence production is being taken in-house. The relationship will be structured as a consortium and Tata Motors will lead the consortium.

Yes Bank: The Foreign Investment Promotion Board (FIPB) has cleared 16 FDI proposals worth Rs 14,000 crore including the proposal of Yes Bank to hike foreign investment limit to 74 per cent, from present 41 per cent making it the first bank to get approval for hiking FDI limit after the new regulations.

Alkem Labs: Drug firm Alkem Labs has informed that one of its manufacturing plants in Gujarat has obtained the Establishment Inspection Report (EIR) ‘approval’ from US health regulator USFDA.