Index Trends And Stocks In Action For May 09, 2014

Indian Equity market opened on firm note on back of positive global cues however as the day progressed market retraced and pared most of its gains resulting in flat close.  The Nifty index closed at 6659 with a gain of 7 points. Now going forward Nifty has immediate support in range of 6640-6645 once this level is breached then the next significant support is around 6610.

However any significant breach of 6610 would be pessimistic for the Nifty index since it will lead to a test of the most vital support levels of 6550 and 6480. If market continues to trade above 6610 the bullish hopes will be alive however bulls will gain momentum only if bulls manage to cross levels of 6730. For day trading 6690 will act as supply zone and next supply zone would be 6730.

SEBI has ruled that Etihad Airways’ acquisition of a 24% stake in Jet Airways (BSE Code: 532617) does not warrant an open offer as there will be no change in the Indian carrier’s ownership structure after the deal. The market regulator’s ruling paves the way for the first foreign direct investment in an Indian carrier after the Government relaxed norms for the sector in 2012. SEBI added that the two airlines have voluntarily made changes to their commercial co-operation agreement (CCA) to ensure that effective control of Jet will remain with its board and Indian nationals. The stock may witness some buying interest in today’s trade.

Bharti Airtel (BSE Code: 532454) is planning to reduce billing charges starting tonight of its postpaid customers after they exhaust their 3G and 2G data limits, a move that will increase stickiness with existing subscribers and push more prepaid subscribers to postpaid, which brings higher margins and revenue for the company. The stock may remain in focus in today’s trade.

Auto components firm Bharat Forge (BSE Code: 500493) said its German subsidiary BFAT has won a euro 250 million multi-year contract from a firm in Germany for supplying suspension components. Bharat Forge Aluminumtechnik GmbH & Co KG (BFAT) has won a prestigious multi-year contract worth euro 250 million from a German OEM for supply for suspension components. The stock may remain in limelight in today’s trade.

Drug major Sun Pharmaceuticals (BSE Code: 524715) is recalling over 4 lakh bottles of anti-depressant and anti-allergy drugs in the US for failing to meet specifications. The recalls of anti-depressant Venlafaxine Hydrochloride extended release tablets of different strengths and anti-allergy Cetirizine Hydrochloride chewable tablets are being made by Caraco Pharmaceutical Laboratories, the US arm of Sun Pharma. The stock may witness volatile trades in today’s session.