Index Trends And Stocks In Action For April 11, 2014

Indian Equity market ended flat on Thursday as stocks oscillated between gains and losses with traders and investors looking a bit cautious ahead of industrial production data due on Friday. Capital Goods, Power and Realty stocks have a good outing. Banks, Metal and Automobiles stocks failed to hold early gains. Information Technology ended weak.

In our last write up we mentioned momentum will be on buy side but Nifty will face resistance around 6824, in today’s trading session we say a positive opening but Nifty failed to cross this hurdle of 6820 so this was in line with our expectation. Now going forward the level of 6824 in the day’s session will be the most critical level for the index for a sustained move above this level would suggest an up move up to levels of 6848 which would be the next supply zone for the index. However in case of profit taking index would find support around levels of 6760 and next important support is around 6728.

With the Maharashtra State Government recently announcing its plans to issue 81450 replacement auto-rickshaw permits, Bajaj Auto (BSE Code: 532977) expects 3 wheeler demand to rise. The management is happy with this move by the Maharashtra Government which will enhance intra city connectivity and create enormous self employment opportunities. The stock may remain in focus in today’s trade.

Tata Motors (BSE Code: 500570) launched the refurbished Aria at Rs 9.95 lakh (ex-showroom, Delhi). The premium utility vehicle gets new decals clear lens tail lamps and black bezel double barrel headlamps. The car gets a new 2.2 litre diesel engine, having peak power of 150PS. The stock may remain in limelight in today’s trade.

IT services company Ramco Systems (BSE Code: 532370) aims to raise over Rs 123 crore by offering shares to existing investors. The company will offer about 79.58 lakh shares through the rights issue in a ratio of one equity share for every two held as of the record date of April 23. Each share with a face value of Rs 10 will be offered at Rs 155. The rights issue will open on May 5 and close on May 19. The issue closing date may be extended provided the offer period does not exceed 30 days. The Chennai-based company is increasing focus on enterprise cloud platform, products and services as well as increasing its marketing presence globally. The stock may remain in action in today’s trade.

The Tatas will have to invest another Rs 2,000 crore in its loss-making wireless telephony firm, Tata Teleservices (BSE Code: 532371), as equity within the next two years to service its loans. This fund infusion will be in addition to the Rs 2,480 crore already invested by the Tatas in January this year which was used to pay off its debt. Bankers said the fund infusion by promoters was important for the company to repay its debt which rose to Rs 24,700 crore as on December 2013. The stock may witness volatile trade in today’s session.