Index trend and stocks in action March 10, 2016

The Indian markets opened the trading session on a dismal note following overnight losses in the US markets and weak trade data in China. However, as the day progressed market turned its course and in the afternoon session it entered into positive territory. After consolidation for a couple of trading sessions the index on the daily time frame chart has formed a ‘Bullish Engulfing’ candlestick pattern, which indicates the dominance of bulls. Now going forward index will face resistance in the zone of 7590-7600. If the index manages to clear this hurdle of 7590-7600, it’s likely to gather further momentum and then it will test levels of 7670. On the downside the index has respected the level of 7400-7420 and going forward this will act as a strong support zone.  The daily RSI has crossed its level of 60 and is at present quoting at 61.

Kotak Mahindra Bank: The Reserve Bank of India has allowed overseas investors to buy stake in Kotak Mahindra Bank as foreign shareholding in the private bank has come below the prescribed limit.

HDFC: Housing finance major HDFC has said it will raise Rs 525 crore through debt instruments on a private placement basis to augment its long term resources. HDFC will issue secured redeemable Non-Convertible Debentures (NCDs) on 11th March, 2016 to raise the required sum.

BHEL: Credit rating agency CRISIL has lowered its rating of long term bank facilities of BHEL, citing constrained business risk profile of the capital goods player. The rating agency cut the long term rating to ‘AA+/Negative’ from ‘AAA/Negative’.

M&M Fin: Mahindra and Mahindra Financial services have informed that its chairman Bharat Doshi has stepped down from his position and also as board member of the company following his nomination to the central board of the Reserve Bank of India.

Corporation Bank: State-owned Corporation Bank has approved raising Rs 1,000 crore capital in multiple tranches and with a green-shoe option if any by way of either issue and allotment of equity shares on preferential basis or by way of additional tier I bonds or follow on public issue.

Monsanto India/Kaveri Seeds: India on Wednesday cut prices of genetically modified cotton seeds and slashed royalty fees by 74%. The maximum sale price of genetically modified Bollgard II cotton seeds was reduced to Rs 800 (per 450gm packet) from Rs 830-1,000 earlier.