Index Trends And Stocks In Action For May 06, 2014
DSIJ Intelligence / 06 May 2014
Going forward there are two major roadblocks for Nifty on upside first is 6740 and second is 6790, if index fails to cross this level in next couple of days we could than we could assume that we are heading towards some correction. On downside crucial support stands at 6670 and next support around 6640.
Indian Equity market ended on a slightly positive note, snapping a five session losing streak with short covering lifting a few front line stocks. The Nifty index settled at 6699 recording gain of 4 points. In our last write up we mentioned that we could see a range bound trading session and this was in line with our expectation as index traded in tight range of 30-45 points.
On daily chart Nifty has found a bullish reversal candlestick pattern, however if we look at momentum oscillator its hinting exhaustion and sell on rise kind of pattern. Going forward there are two major roadblocks for Nifty on upside first is 6740 and second is 6790, if index fails to cross this level in next couple of days we could than we could assume that we are heading towards some correction. On downside crucial support stands at 6670 and next support around 6640.
The income tax department is investigating Sun Pharmaceuticals (BSE Code: 524715) for some related-party transactions and alleged misuse of research & development expenses. This comes after the Andhra Pradesh High Court put on hold the company's USD 4 billion acquisition of Ranbaxy Laboratories (BSE Code: 500359) over insider trading charges. The stock may remain volatile in today’s trade.
Muthoot Finance (BSE Code: 533398) has successfully completed its Institutional Placement (IPP) in order to comply with Securities and Exchange Board of India (SEBI) guidelines for the minimum shareholding to come to 25%. The IPP oversubscribed 1.8 times having raised Rs 418 crore that will be used for gold loan business. The stock may remain in action in today’s trade.
Century Textiles and Industries (BSE Code: 500040) plans to issue 1.86 crore preferential warrants (16.6% equity) to promoters. According to company press release, not only the promoter group entity, but also persons acting in concert might be considered for preferential allotment. Hence, it will be important to see whether it goes to KM Birla. If allotted then this may re-rate the stock further. The stock may witness further buying interest in today’s trade.
GSM operators Idea Cellular (BSE Code: 532822), Vodafone India and Bharti Airtel (BSE Code: 532454) have resumed offering third generation (3G) services on each-others networks, after the Telecom Disputes Settlement and Appellate Tribunal cleared the services last week. The telecom stocks may remain in action for this new development that came into force in the last week.
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