Index trend and stocks in action March 11, 2016

The Indian market began the session on a positive note following a pattern trend in the Asian markets. However, the bulls failed to pick up energy and slipped into a negative zone owing to profit booking in the banking and information technology stocks. Once again bulls managed to witness a bounce back from its vital support levels of 7420-7440 and in the end it settled with losses of over half a per cent.  After forming a "Bullish Engulfing" candle as on 9th March, 2016, the index followed it with a negative candle and formed a "Bearish two candle pattern" i.e. potential ‘Dark Cloud Cover’, which indicates bulls are unable to hold prices higher; demand is unable to keep up with the growing supply.  The zone of 7400-7440 is a crucial support for the index and if this level is pierced by the bear’s its likely to open up for correction up to levels of 7330. On the upside the zone of 7550-7590 will act as a stiff resistance. The momentum oscillator has turned from the level of 60, which is the highest level of bearish range 30-60.

PSU Banks: Rating agency CRISIL has downgraded 8 PSU Banks and has given a negative rating to 5 other banks. The banks that got downgraded by Crisil include Andhra Bank, Bank of India, Bank of Baroda, Canara Bank, Central Bank, Corporation Bank, Dena Bank and IDBI Bank.  Steep rise in NPAs, expected further surge in stressed assets and the consequent hit on profitability and capital will dent credit profiles, Crisil said.

Sun Pharmaceuticals: Drug major Sun Pharmaceuticals has recalled around 3.8 lakh cartoons of an osteoporosis drug in the US and Puerto Rico due to presence of ‘unknown impurity’. The recall of 3, 81,120 cartons of Alendronate sodium tablets has been initiated by Sun Pharma Global FZE, an arm of the Indian pharma major.

Reliance Industries: Reliance Industries said its board of directors has declared an interim dividend of Rs 10.50 per share for 2015-16, involving a pay-out of nearly Rs 3,300 crore, 46 per cent of which would go to the promoter.

Infosys: Two of the original promoters of IT bellwether Infosys, S Gopalakrishnan and S D Shibulal and some of the latter’s family members sold 7.5 million equity shares in the company for Rs 862 crore on the exchanges.

JSPL: Franklin Templeton MF has dumped a portion of its holdings to an unknown buyer. The bonds, held by Franklin’s debt scheme were sold at a loss. This action was taken post the rating company Crisil downgraded JSPL bonds to junk category.

Skipper: Skipper has informed that it has secured two new orders from Power Grid Corporation for the supply of transmission towers in the domestic market. The total order is valued to be approximately worth Rs 120 Crores.

OMDC: CBI registered a case against two senior officials of Orissa Minerals Development Company (OMDC) and few others for thrusting a loss of Rs 350 crore to the exchequer through controversial share transfer.