Index Trends And Stocks In Action For April 28, 2014

Indian Equity market flagged off on a positive note and made new lifetime high in early trade, despite hitting new high the indices ended on a weak note as weakness in Asian and European markets amid worries about the ongoing conflict in Ukraine and a forecast for a below normal monsoon prompted investors to trim down positions. Nifty on daily chart has formed a bearish engulfing pattern and the Nifty index has engulfed almost previous 3 day’s candlestick, so this hint some signs of correction and start of some bearish move. On weekly chart we can see a Gravestone Doji pattern which is a top reversal pattern. For intraday trading 6730 will act as an important support for the index, if bulls manage to hold this level than a small bounce back is not ruled. On upside 6830 will act as a major roadblock for the bulls.

The Rs 524 crore rights issue of IL&FS Transportation Networks (BSE Code: 533177) will open on Monday and the proceeds will be utilised mainly for repaying loans. The company will issue 5.24 crore equity shares of face value of Rs 10 each for cash at Rs 100 per share (a premium of Rs 90) for an aggregate amount of up to Rs 524.52 crore to the existing investors. The stock will remain in focus in today’s trade.

Steel Authority of India (BSE Code: 500113) (SAIL)BSE -0.76 % has won two global tenders for supplying over 1.17 lakh tonne of rails worth Rs 650 crore. The company in a statement said two global tenders totalling to Rs 650 crore were floated by Rail Vikas Nigam (RVNL) for major passenger railway line projects in the country. The stock may remain in limelight in today’s trade.

Vishwa Kalyan Kamgar Sanghatana (VKKS), the independent trade union of Pune based two wheeler manufacturer Bajaj Auto (BSE Code: 532977) has deferred the proposed strike from till May 15 saying that workers have decided to give more time to the management to consider their charter of demands. On April 14, the union had issued notice to Bajaj Auto management to go on strike form April 28 as the management is not utilising its corporate social responsibility funds for the benefit of workers. The stock may witness volatility in today’s trade.

Engineering and construction firm Larsen and Toubro (BSE Code: 500510) has received a USD 740 million (approx Rs 4,510 crore) order from Qatar Railways Company for the design and construction of the Gold Line of the Doha metro project. L&T was among the five firms that forged a joint venture to bid for the project. The total order awarded to the JV is valued at USD 3.3 billion, but the share of L&T Construction's Heavy Civil Infrastructure business is valued at USD 740 million. Two firms from Turkey and one each from Greece and Qatar had formed the joint venture. The stock may remain in focus in today’s trade.