Index Trends And Stocks In Action For April 02, 2014

Indian Equity market extended their winning streak for a fifth successive session and recorded new closing high on Tuesday led by Information technology and Oil stocks. Nifty ended the day at 6732. Nifty on daily chart has formed a hanging man candlestick pattern; this pattern occurs mainly at the top of uptrend and is a warning of a potential reversal downward.

Going ahead major hurdle for the bulls on upside is around levels of 6735 and next resistance level is around 6769. On downside Nifty has strong support around levels of 6660, once it falls further below 6660; the profit taking led sell off might take Nifty up to levels of 6590. However, as long as the level of 6590 is held the bulls can again push it up higher.

IL&FS Engineering and Construction Company (BSE Code: 532907) received a Letter of Intent (LoI) from Ireo for construction of its luxury residential project ‘Gurgaon Hills’ located at Sec-02, Gurgaon, Haryana. The Rs 175.80-crore contract is to be completed in 39 months. The ‘Gurgoan Hills’ luxury residential project has Six Towers (20 to 26 Storey) with total built-up area of around 1.77 million sq.ft. IL&FS Engineering is currently executing building projects worth more than Rs 850 crore in National Capital Region (NCR) for clients that include Emaar MGF Land Limited, Unitech, Ansal Properties & Infrastructure Limited, Parsvnath Developers Limited, and Puri Constructions. The stock may remain in focus in today’s trade.

A large US-based strategic acquirer is in fairly advanced talks to buy majority shares in Educomp Solutions (BSE Code: 532696) as its founder seeks to restructure the debt-laden company. The potential acquirer may invest about USD 300 million (Rs 1,800 crore) through a combination of primary shares and mandatory open offer to emerge as the majority shareholder in Educomp. The stock may witness some buying activity in today’s trade.

Reliance Power’s (BSE Code: 532939) 600 MW coal-based power plant at Butibori in Maharashtra is fully operational. Butibori Power Project, being developed by Vidarbha Industries Power (VIPL), a subsidiary of Reliance Power, is fully operational, the company said in a regulatory filing.  It has commenced supplies under the Long Term Power Purchase Agreement with Reliance Infrastructre (BSE Code: 500390).

Navratna Defence PSU Bharat Electronics (BSE Code: 500049) has ended the year 2013-14 with Rs 6,180 crore turnover (provisional) against the turnover of Rs 6,012 crores during 2012-13. It achieved exports worth USD 41.70 million in 2013-14, registering a growth of 27.21% over the previous year's export turnover of USD 32.78 million. BEL has an order book of around Rs23200 crore. Some of the significant orders executed during the year include weapon system for the Indian Air Force and Indian Army, central acquisition radar, low level light weight radar, shipborne electronic warfare system, low intensity conflict electronic warfare system, missile warning system, passive night vision devices and electronic voting machine. The stock may remain in limelight in today’s trade.