Index Trends And Stocks In Action For April 23, 2014

Indian Equity market after a quiet start went on to hit their new all time highs in morning trade. Post the market was quite sluggish almost right through the day.  The Nifty settled at 6815 recording loss of 2 points. In our last write up we mentioned if Nifty manages to sustain above 6838-6840 level we can expect Nifty take off. However it failed to cross this hurdle and ended on flat note so our anticipated supply level worked perfectly.

Now going forward Nifty needs to get past 6840 decisively in order to really show any further significant up-move. If Nifty manages to get past 6840 it is likely to touch levels of 6860. On downside 6770-6750 is important support zone for Nifty. Today being the expiry day for the April series, markets would be volatile in second half, we expect market to trade in the range of 6750-6860, At current point of time stock specific approach will be rewarded as stocks are showing good move rather than index which is consolidating phase.

Unable to meet its mined metal output target for FY14, Vedanta Resources company, Hindustan Zinc (BSE Code: 500188) will be reworking its mining plan at the world’s largest lead-zinc deposits—the Rampura Agucha mine in Rajasthan. The company’s mined metal production for the year ended March stood at 880,000 tonne, down from its target of 1 million tonne announced in the beginning of the fiscal. The stock may remain volatile in today’s trade.

GMR Infrastructure (BSE Code: 532754) has made an upfront 14.4 billion Philippine Pesos (about USD 320 million) payment and signed the concession agreement to develop and operate the Mactan Cebu International Airport in the Philippines. GMR, together with Philippines based construction firm Megawide, had won an international bid to develop and operate the Mactan Cebu International Airport (MCIA) on April 4. The project is estimated to cost about USD 700 million. The stock may remain in focus in today’s trade.

Tech Mahindra (BSE Code: 532755) has inked a pact with New Hampshire's Division of Motor Vehicles (DMV). Tech Mahindra, under the multi-million dollar deal, will implement its Motor Vehicle Enterprise System (MOVES) to replace and modernise New Hampshire DMV's existing legacy system. The new DMV solution will digitally manage all driver licences, financials, financial responsibility, hearings, inventory, dealers and inspection stations. The stock may witness some buying interest in today’s trade.

The biggest private sector oil & gas producer Cairn India (BSE Code: 532792) as per market street expectations is likely to show a healthy growth in profits aided by higher production for Q4FY14 results due to be declared today.  Cairn India's net profit for the quarter is expected at around Rs 2850 crore, which is 11.2% higher on year-on-year. The stock may remain in limelight in today’s trade.