Index trend and stocks in action November 09, 2016

The Indian benchmark indices got off to a positive start owing to strong overnight gain in the US markets and positive leads from the Asian peers. Thereafter, Nifty slipped to lower levels and remained listless. However, buying emerged in the later part of the day. On the daily chart, Nifty formed a long legged doji candlestick pattern. Nifty is now entering into the gap zone which was created on November 2, 2016. Now going forward major resistance is placed in the zone of 8580-8630. On the downside, the zone of 8480-8500 is likely to act as a support zone. However, breach of this zone may open up for correction up to levels of 8400-8320.

BHEL: BHEL reported a sharp turnaround in earnings for the second quarter. Profit for the quarter stands at Rs.100 crore against a net loss of Rs. (180) crore in the corresponding quarter last year. Revenues were up 12 per cent at Rs.6664 crore on a YOY basis.

Ashok Leyland: Ashok Leyland reported a sharp up-tick in profits although volume growth remained tepid. Net profit is up by 71 per cent at Rs.294 crore on a YOY basis. Revenue for the quarter, however, declined by 6.9 per cent at Rs.4912 crore. This fall in revenues was driven by a 9 per cent fall in volumes. The major hit came from the MHCV segment, which saw volumes slip by 15 per cent. Operating margins contracted by 100 bps to 11.6 per cent.

Biocon: Bengaluru-based Biocon and its partner Mylan Inc., announced submission of Mylan’s biologics licence application to USFDA for a proposed biosimilar to branded trastuzumab for treatment of certain breast and gastric cancers.