Index Trends And Stocks In Action For April 30, 2014

Indian Equity market continued to slide down for the third day in a row. Worries about Ukraine and Caution ahead of US Federal Reserve’s Policy review dragged the market down. The Nifty closed at 6717 with loss of 43 points. In our last write up we mentioned that the Nifty index looks weak and waiting on the side line would be better option as if now. On daily chart Nifty managed to hold the support of 21-day EMA which is an important short term moving average, if index manages to trade below the 21-day EMA support we could see index testing levels of 6650-6670.

One more factors which supports the bear is that the RSI has see a notable downfall from higher 70 level to 40 odd levels in three-four session. For intraday Nifty has strong support around 6670 and next support level is around 6640. If Nifty manages to hold 6640 expect a bounce back. On upside Nifty will face resistance around 6740 and next resistance is around 6770.

Delta Corp (BSE Code: 532848) came under the scanner of the income tax authorities for alleged tax evasion. A related probe also covered Peninsula Land (BSE Code: 503031), the real estate arm of the Ashok Piramal Group. About 25 residential and official premises of the two companies were covered in Mumbai and Goa as part of the operations. The stocks may remain volatile in today’s trade.

Glenmark Pharmaceuticals (BSE Code: 532296) has informed that its novel monoclonal antibody for potential treatment of chronic pain is entering human trials. The company has completed preclinical studies and Phase 1 enabling preclinical development programme for GBR 900. It has filed a Phase I clinical trial application with the MHRA, UK. The stock may remain in focus in today’s trade.

IRB Infrastructure Developers (BSE Code: 532947) has bagged a Rs 3,200 crore road project in Maharashtra from National Highways Authority of India (NHAI). The project is for 4-laning of Yedeshi - Aurangabad section of NH-211 from 100 km to 290.20 km in Maharashtra and will be executed as build-operate-transfer (BOT) on design- build-finance-operate-transfer pattern under NHDP-IV. The company has received Letter of Award after emerging as the preferred bidder for the project. The stock may witness buying interest in today’s trade.

Shriram Transport Finance Corporation (BSE Code: 511218) reported an 18% fall in its fourth quarter consolidated net profit hurt by higher provisions and finance costs. In the January to March period, the commercial vehicle financier posted a net profit of Rs 315 crore against Rs 383 crore, a year ago. Consolidated figures include the financial performance of Shriram Equipment Finance Company and Shriram Automall, in addition to the mainstay commercial vehicle finance business. Provisions during the quarter increased to Rs 318 crore from Rs 233 crore in the same period, a year ago. The company had tried to diversify into other businesses like second-hand car financing as loan off-take for commercial vehicles suffered due to a slow business environment. The stock may witness volatility in today’s trade.