Index trend and stocks in action March 16, 2016

The benchmark indices got off to a flattish start in the back drop of sluggish trade in the Asian markets. After trading in a tight range for the first half of the trading session, selling pressure emerged in the afternoon session as the European market opened with bearish tone. Eventually, the index closed with loss of over a per cent around 7460. On the daily chart the index has formed a potential three day bearish reversal pattern i.e. “Evening Doji Star”. It’s not a classical one. However, the range bound pattern is still intact as index has managed to hold on to its support level of 7420. Now going forward immediate support for the index is placed around 7400-7420 level, and if the index fails to hold on to the immediate support,  it’s likely that the index has made a short term top and the markets might enter into a corrective phase. Next major support for the index in that case will be around levels of 7320. On the upside, level of 7550 will act as a stiff resistance for the bulls, and they need to sustain above this level for gaining fresh momentum.

Cairn: The Income Tax Department has slapped a tax claim of Rs 29,000 crore on Cairn. This comprises an Rs 18,800 crore of back-dated interest. The disputed capital gains in this case are Rs 10,247 crore. These capital gains are assumed to have been made during the restructuring of Cairn business in the year 2006.

MEP Infrastructure: Road toll management company MEP Infrastructure has informed that it has been awarded with a one year toll collection contract in Jharkhand from the National Highways Authority of India (NHAI).

Anuh Pharma: Drug firm Anuh Pharma said that following an inspection of its manufacturing site at Boisar in Maharashtra, the European Directorate for the Quality of Medicines and Healthcare (EQDM) has suspended certificate of suitability for three of its drugs.

Adani Enterprises: Parliament in the Australian state of Queensland agreed that Adani Enterprises should be granted “all state government approvals” to build one of the world’s biggest coal mines, state mining minister Anthony Lynham said.

Thomas cook: Thomas cook subsidiary Sterling holidays resorts has acquired Nature Trails Resorts an adventures holiday company that operates resorts at five destination in Maharashtra.

HCL Technologies: HCL Technologies has been awarded with a contract to the tune of Rs 60 crore by RBI to upgrade its IT Infrastructure.