Index Trends & Stocks In Action For 6 November 2013

Finally the bulls took a breather and ended a 5-day winning streak. The markets ended lower by 1% as investors and traders booked profit after the sharp gains they registered recently. The market sentiment was also hit adversely after a survey showed that India’s vast service sector activity remained weak in the month just gone by. The Nifty managed to close below the low of 1st November, which is a negative and hints that the market may correct a bit in the near term. For today, the Nifty has a strong support around levels of 6210-6190. On the upside 6280-6315 will act as strong resistance.

Dr Reddy’s Laboratories is apparently facing a problem. According to reports, Teijin Ltd, which owns the US patent of hyperuricemia drug feuxostat along with the two license holders of the patent has filed an infringement suit against DRL for seeking to manufacture and sell a generic version of the drug in the US before expiration of the patent. The stock is likely to come under pressure following this development and may see some downside today.

After having captured the imagination of the Indian car owner with its SUVs, Mahindra & Mahindra is now looking at setting up itself firmly in the two-wheeler segment. After having gone slow for quite some time on that front, the company is now looking at the rural market to spread its wings in the motorcycle segment. The revelation bodes well for the M&M stock which will react positively and see some upside in today’s trades.

Videocon Industries has reportedly confirmed an oil discovery in its Brazilian offshore block saying it has struck 200 feet of high-quality hydrocarbon zone. According to a company representative, the Wahoo-5 appraisal well at (block) BM-C-30 drilled the eastern flank of the Wahoo structure and encountered more than 200 net feet of high-quality pay in a pre-salt reservoir, with a total hydrocarbon column now established at 460 feet. This discovery will help the Videocon stock on the upside and keep it in positive territory at least for some more time extending beyond today.

Indian drug makers have done a remarkable job so far. Suven Life Sciences has reportedly been granted two product patents, one each from the US and Japan, for its New Chemical Entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases. The stock of the company will see some positive move following this disclosure as it bodes well for the future prospects of the company.