Index Trends And Stocks In Action For April 22, 2014

Indian Equity market after a moving in a very narrow range in midsession rallied in the final hour and both the benchmark indices Sensex and Nifty recorded their new all time high. The Nifty ended at 6817 up by 38 points. Bank, Metal and automobile had a pretty good outing. Power and Oil Stocks saw some buying early on but failed to hold at higher levels. In our last write up we mentioned that this upward journey will continue as there is no sign of exhaustion and what we anticipated was in line with our expectation.

Going forward market looks in good shape but some consolidation and correction could not be ruled out. However as long as Nifty holds its important support of 6650-6640 on closing basis every dip should be bought. On Tuesday once Nifty sustains above 6838-6840 we can expect Nifty to test the important supply zone between 6855-6865. On downside unless Nifty falls below the major support zone of 6770-6750, it would hold its momentum to post a bounce back.

Tech Mahindra (BSE Code: 532755) has acquired US-based big data analytics startup FixStream Networks for around Rs 60 crore. Tech Mahindra has informed that it will acquire 75% stake in the one year old company which counts large technology companies Cisco Systems, CenturyLink, and DirecTV among its early stage customers. The stock may remain in focus in today’s trade.

Reliance Industries (BSE Code: 500325) plans to open 2,000 exclusive outlets, Digital Xpress Mini, in the current fiscal year to sell the company's telecom services, smartphones, tablets and also accessories of other brands. These stores will be about 250 square feet and sell the upcoming services of Reliance Jio Infocom. Reliance Jio plans to provide, later this year, all telecom services including mobile phone and fourth generation high speed internet services. The stock may remain in focus in today’s trade.

Hotel Leelaventure (BSE Code: 500193) is in talks with sovereign wealth funds of Abu Dhabi, Qatar and Malaysia to sell its prime properties in Delhi and Chennai for around Rs 1,850 crore to pare debt. The firm, which owns, operates and manages hotels, palaces and resorts, is likely to hive-off the two properties into separate entities. While the foreign investor may pick up 74% interest in the hived-off entities, Leelaventure will retain 26% stake and continue to manage the five-star hotels. The stock may witness some buying interest in today’s trade.

Idea Cellular (BSE Code: 532822) led GSM subscriber additions for March, followed by Vodafone India, the second largest operator, as the industry ended the month with 721.93 million users, up 1.2% from February, as per the Cellular Operators Association of India (COAI). Aditya Birla Group company Idea added 2.24 million users, Vodafone 2.22 million while market leader Bharti AirtelBSE 3.00 % gained 1.89 million subscribers, COAI said. The stock may remain in focus in today’s trade.

Tata Consultancy Services (BSE Code: 532540) has signed a definitive agreement to merge its Japan subsidiary with Mitsubishi Corporations’s IT arm, IT Frontier Corporation, to form a single IT services unit. TCS will hold 51% stake in the merged entity, called TCS Japan, with Mitsubishi holding 49%. TCS is investing USD 50 million as payment to Mitsubishi. The deal is expected to close by June end. The stock may remain in focus in today’s trade.