Index Trends And Stocks In Action For May 12, 2014

Indian Equity market opened on subdued note but after that the bulls were on one way upward journey and went on to hit fresh life time high. Nifty ended above 6800 for first time at 6858. All the sectors indices were in top gear however Pharma ended in red. In our last write up we anticipated fresh momentum for nifty will come only if bulls manage to pierce level of 6730 and what we saw was as soon as bulls cleared 6730 it was one way march to life time high. 

On weekly chart nifty has formed bullish engulfing candlestick pattern, which is positive for the bulls. Daily chart RSI is now above 60 which suggest the momentum is in favor of bulls. Going forward 6880 will act as stiff resistance for nifty if nifty manages to sustain above this level nifty might touch 6940-7000 in short term. On downside 6830 and 6790 are two important supports for nifty for intraday.

Realty firm Ansal Properties and Infrastructure (BSE Code: 50013) has revived its plan to develop a 75-acre IT special economic zone (SEZ) in Greater Noida and will invest about Rs 130 crore over the next three years on construction. The IT SEZ was notified by the Commerce Ministry in 2006, but the company was going slow in the development of SEZ project due to global economic slowdown. The stock may remain in focus in today’s trade.

State-owned Syndicate Bank (BSE Code: 532276) plans to raise USD 350 million through Medium Term Notes (MTNs) during the current quarter to meet lending requirements of its London branch. A medium-term note (MTN) is a debt security that usually matures in five to 10 years. The stock may remain in limelight in today’s trade.

Backed by robust revenue growth, Torrent Pharmaceuticals (BSE Code: 500420) has reported 120% jump in net profit for the quarter ended March 31 to Rs 244 crore, as against Rs 111 crore in the year-ago period. The company's revenue rose 41% during the January-March quarter to Rs 1,225 crore from Rs 871 crore in the same quarter of previous year. The stock may witness buying activity in today’s trade backed by strong results.

Reliance Industries (BSE Code: 500325), along with its partners BP and NIKO have issued a notice of arbitration to the government of India seeking implementation of the revised price for gas produced from the Krishna-Godavari basin (KG-D6). The 'Domestic Natural Gas Pricing Guideline 2014' was notified on January 10, 2014 after the government approved the Rangarajan formula doubling gas prices to USD 8.4 per unit from April 1. While the change was criticised by political parties and consumers, RIL defended it saying that the new price is still below the price of imported liquefied natural gas (LNG). The Election Commission stopped the government from announcing the new price until the election code of conduct is in force. Volatility in today’s trade in the counter cannot be ruled out.