Index Trends And Stocks In Action For 8th July 2013

On Friday the markets gained for the second straight day but ended off their days high as investors turned cautions and booked profits at higher levels. The Nifty gained 31 points to close at 5868. The Nifty moved exactly as we had expected it to. We had mentioned in our last write up, that the Nifty is likely to move in range of 100 points where upside is capped at 5900 and that is what we witnessed. The index topped out at 5900 mark in intra-day trades and corrected 30-40 points from that level. Going ahead, 5905-5920 will act as strong resistance zone for the Nifty. It has made a double top pattern around this zone. If it can cross this resistance it may touch 5970. On other hand the index has a strong support at 5850 with the next support coming in around levels of 5800.

The Board of Directors of Reliance Communications has approved the demerger of its real estate assets into a separate firm, Reliance Properties. This is a part of the company’s strategic plan to divest non-core assets and focus on its core wireless and enterprise business. The demerger is subject to shareholder and regulatory approvals. The news however is likely to keep the stock in focus for today.

Lupin is looking to acquire companies and brands globally, including in the US, Japan and China, to expand its global footprint. The firm is adopting a three-pronged approach in its acquisition strategy, which also includes the domestic market. While it will scout for brands to acquire, in some geographies, it will look to take over companies which can provide it new technology or market access. The stock of the pharma giant will remain in focus following these developments.

Tata Motors' owned Jaguar Land Rover production line in the UK may grind to a halt within weeks after delivery workers from DHL voted for a strike, demanding a large pay rise and similar terms and conditions on par with the JLR staff. Not a good sign of times to come. The stock may face some negative pressure following this development.

Fresenius Kabi has reported that it has received a warning letter from the US FDA on its API plant located at Kalyani, in West Bengal. The US FDA has asked for certain information related to the corrective and preventive measures in the manufacturing processes. The letter has been issued in respect to the manufacturing and documentation practices in the aforementioned API plant. The stock is likely to see downward trend on this news.