Index trend and stocks in action July 8, 2016

Indian benchmark indices got off to a cautious start despite positive cues from the US markets overnight. Thereafter market kept oscillating in a narrow range through the day’s trade. Finally, Nifty settled unchanged from previous day’s closing. On the daily chart Nifty has formed a potential ‘Doji’ Candlestick pattern, which indicates there is indecision amongst the participants. Nifty has immediate support placed at 8300 level, if Nifty sustains below 8300 levels, it could possibly lead to a strengthening of downside momentum, and in this case its likely to test levels of 8240. On the upside, 8400 will remain a big hurdle for Nifty in the short term. At present, the trend of Nifty is range bound and it’s likely to move in the range of 8300-8400. Breach of this range will bring big move on either side. 

Lupin: In a major relief to Lupin, the US FDA closed 9 inspections that it had undertaken last year. The inspection pertained to the Goa facility for which the USFDA has already issued an Establishment Inspection Report (EIR). The USFDA had conducted two inspections of Lupin’s Goa plant and had made a total of 19 observations of which 9 have been closed.

Mahindra Holidays & Resorts India: The company announced that Holiday Club Resorts Oy, Finland, step-down subsidiary of the company, has signed a Joint Venture agreement with City of Kuusamo, for establishment of Tropiikin Rantasauna Oy (JV Entity).

Idea Cellular, Bharti Airtel and RCOM: The department of telecommunications (DoT) is preparing to slap demand notice to the tune of around Rs 12,500 cr on at least six telecom firms after the government auditor found they had under-reported revenue by Rs 46,000 cr as per a media report.

Ultratech Cement: Aditya Birla Group controlled Ultratech Cement has informed that it has won two coal linkages for its cement plants in Maharashtra.