Index Trends And Stocks In Action For May 13, 2014

Indian Equity market continued to rally for the second day in a row as the bulls stayed aggressive once again. The Nifty index settled at 7014 recording gain of 155 points. We mentioned in our last write up that Nifty is likely to touch levels of 7000 in short term and in today session we saw Nifty touched level of 7000. Now going forward major resistance for Nifty would be found at 7048, if Nifty manages to sustain above this level than it’s likely to touch mark of 7095. On downside major support would be around 6870 in any case this level should not be breached in event of profit taking, if this support level is breached than next major support stands at 6800.

Bharti Airtel (BSE Code: 532454) initiated sale of foreign currency bonds, which will be used for repayment and refinancing of existing foreign currency debt, among others. The company said its subsidiary Bharti Airtel International (Netherlands) has approached investors for issuance of debt instruments in the form of USD and Euro denominated senior unsecured guaranteed notes. The stock may remain in focus in today’s trade.

Power producer NTPC (BSE Code: 532555) has cancelled a Rs 23,000 crore contract with Thiess Minecs India due to delays in development and operation of the Pakri-Barwadih coal block. Thiess Minecs was appointed mine developer and operator for NTPC's Pakri-Barwadih captive coal block in Jharkhand on November 30, 2010, after a global tender. The company wanted to start mining coal to reduce dependence on the market for the fuel. The stock may remain volatile in today’s trade.

Two major central public sector undertakings, Nalco (BSE Code: 532234) and SAIL (BSE Code: 500113) agreed to go for an out-of-court settlement on outstanding electricity and water dues to the Odisha government. The issue was raised at a meeting attended among others by Union steel secretary A K Pujari and Union mines secretary G Mohan Kumar, Chief Secretary J K Mohapatra. It was decided to constitute a joint committee comprising Principal Secretary Water Resource, Principal Secretary Energy, authorities of SAIL, NALCO and other concerned departments to look into different aspects and work out solutions. The stocks may remain in limelight in today’s trade.

Intensifying its fight to wrest control of Vijay Mallya's Mangalore Chemicals & Fertilizer (BSE Code: 530011), Zuari group is likely to offer a higher price to the firm's shareholders in a bid to defeat a rival offer by Deepak Fertilisers (BSE Code: 500645). In a hostile takeover bid, Deepak Fertilisers on April 23 raised its stake in the MCFL to 25.31% and announced an open offer to buy another 26%. Zuari Fertiliser holds 16.43% stake in MCFL, while promoter UB group has 22.91%. The stocks may remain in action in today’s trade.