Index Trends & Stocks In Action For 5th June 2013

The Indian markets ended lower for the third straight day on Tuesday, weighed down by profit-booking in banking stocks as hopes of a rate cut by the central bank faded. The Nifty ended down by 20 points at 5919.

In our last write up, we mentioned 5910 will act as a crucial support level. Yesterday we saw was the Nifty touch a low of exactly 5910 after which it bounced back a little.

Going forward, if the Nifty breaks 5910 with good volumes, it will confirm a neckline breakout of a head and shoulders pattern which suggests a downside target of 5850-5780. The next support will come in at 5870. On the higher side, 5940 will act as a crucial resistance.

Shares of Cadila Healthcare yesterday surged more than 5% while the markets closed in red. The shares surged on the back of news that the company would announce the discovery of a novel drug today. This however remains unconfirmed news. The stock is likely to remain in focus on the back of these rumours. If the company informs the markets about any such development then one could see further upside in the stock. If there is nothing prominent then the stock may erase the gains.

According to news sources, Bengal is further set to increase power tariffs by 20 paise from next month on the back of the rise in fuel costs. The move is likely to have a positive impact on the shares of CESC which has a power generation and distribution business in Kolkata.

Sun Pharmaceutical Industries has got final approval from the USFDA for its Abbreviated New Drug Application (ANDA) for generic version of Depo-Testosterone Injection, Testosterone Cypionate Injection USP, 100 mg/ml and 200mg/ml. The generic Testosterone Cypionate Injection USP, 100 mg/ml and 200mg/ml was "therapeutically equivalent to Depo-Testosterone Injection of Pfizer Inc''. Stock prices of Sun Pharma are expected to see upward movement today.

A Bharti Airtel-led consortium has submitted its final bid for telecom licences in Myanmar, as India's biggest private telecom company looks to expand its overseas operations. Airtel already offers services in Sri Lanka, Bangladesh and 17 African countries apart from India. Apart from the Airtel consortium, there are 10 other bidders in the race for two new licenses in Myanmar, which include Axiata, Digicel, France-Tel, KDDI, Millicom, MTN, QTel, SingTel, Telenor and Viettel.