Index trend and stocks in action March 09, 2016

The Indian markets commenced the week on a flattish note, however, it showed some strength in the morning trading session and eventually the sentiments turned pessimistic in the afternoon trading session as investors and traders preferred to book profits after registering sharp gains in the previous week. After forming a ‘Hanging Man’ candlestick pattern as on 04th February, 2016, Nifty has followed up with a Doji candlestick pattern on 08th February, 2016, which indicates indecisiveness amongst buyers and sellers. Now going forward the zone of 7400-7440 will act as an important support for the index. If index trades below this support zone it will open up for a correction up to levels of 7330. On the upside the zone of 7550-7575 will act as a stiff resistance level.  The daily RSI has touched the upper limit of 60 levels. The RSI needs to sustain above 65 levels for further momentum.

Mindtree: Mindtree will turn ex-date for bonus on Wednesday. It is rewarding shareholders with 1:1 bonus issue. The company has fixed March 11 as record date to identify eligible shareholders to receive the bonus shares. The stock, which is quoting at around Rs 1,550, will be trading in Rs 775-800 range.

Majesco: Majesco, a global provider of core insurance software, consulting and services for insurance business transformation, today announced that Business Agility, a specialist insurance systems integrator in the UK market with core competencies in enterprise software implementation, has joined their partner ecosystem.

Container Corporation of India: As a part of disinvestment programme, the government of Indian plans to sell a 5 per cent stake in Container Corporation of India (CONCOR) to raise a sum of Rs 1165 crore. The floor price set for offer for Sale (OFS) is set at Rs 1195 which is a discount of 2.5 per cent to the closing price of Rs 1,226.5. A total of 97.48 lakh shares will be sold by the government in this divestment.

Maruti Suzuki: Maruti Suzuki the country’s largest car company launched the much awaited Vitara Brezza sub-compact SUV in India at introductory prices starting from Rs 6.99 lakh to 9.68 lakh (ex-showroom Delhi).

ITC: FMCG major ITC has informed that the company has received Telangana government approval for pulp manufacturing unit in Bhadarachalam.

Sun Pharmaceuticals: India’s largest drug maker Sun Pharma’s ArmTaro gets FDA nod for Oxiconazole Nitrate Cream.

Shaily Engineering: DSP Blackrock Mutual Fund bought 4.5 lakh shares of Shaily Engineering at Rs 500 per share.

JSPL: A group of foreign lenders of Jindal’s flagship Jindal Steel and Power (JSPL) are discovering the pros and cons of taking the extreme step of recalling loans adding up to $550 million from the company with the leveraged group failing to comply with loan covenants ahead of the repayment schedule that begins next month.