Index Trends & Stocks In Action For 24th September 2013

Indian Equity market and the rupee declined for a second straight day. Rate-sensitive stocks, especially banking led the fall with SBI dropping more than 5% and Icici Bank soften more than 4%. The NSE Nifty declined 122 points at 5889. On analyzing daily chart of nifty we witness nifty has formed lower top and lower bottom pattern and nifty pierced Friday’s low and close below that level which signal bearishness in coming trading session. Going ahead on downside nifty has strong support around levels of 5800 if we break this level and if we close below this level we may go on to make new swing low in short term. On upside nifty will face resistance around levels of 5930-5950.

Glenmark Pharmaceuticals has received final approval from the US health regulator for its generic Desoximetasone Ointment and will commence the shipping of the product immediately.

Gati has informed that the Arbitral Tribunal has passed its award dated 17 September, 2013 directing Air India to pay a net sum of Rs 26.82 crore towards claims, damages, interest and costs towards one of the pending disputes between the two companies. Also, the Arbitral Tribunal has said that in the event of Air India failing to comply with the Award within 30 days from the date of Award, Air India shall be liable to pay future interest at 18% per annum thereafter. The shares of Gati should do well today.

In a move to revive the road sector in the country, the ministry of road transport and Highways is looking to award close to 6500 Km of road projects through the Engineering, Procurement and Construction (EPC) mode during 2013-14. The ministry has been actively looking to award projects on the EPC basis for the past few years as a number of projects have been struggling since they were awarded on the BoT model. The ministry will also award three major expressway projects by the end of the year according to the secretary. One could see some upside in the infrastructure stocks such as IRB Infra, GVK, GMR etc.

Pharmaceutical Major, Lupin has signed a strategic co-promotion agreement with US based Onset Dermatologics to exclusively promote Locoid lotion to Pediatricians in the USA. Locoid is the most highly prescribed mid-potency steroid brand in the USA. The company has said that this addition would bring meaningful products to the US Pediatric community and has sounded very excited of it. One may see stock to gain some positive traction today.