Index Trends And Stocks In Action For May 16, 2014

Indian Equity after a bright start in morning oscillated in range of 50-60 points all through the day as traders and investors appeared a bit reluctant to build up positions ahead of election result which is due on 16th May, 2014. In our last write up we mentioned that market will see some consolidation and this was in line with our expectation. In today session it appeared that the bulls are hesitant to take the Nifty past resistance zone of 7150-7160 in a rush. May be they are waiting for the authentic outcome of the event before the final blow up.

Going forward most critical support for Nifty on downside is place in zone of 7050-7060. Once Nifty breaks this level it’s likely to fill the gap which was created on May 13, 2014. On upside the strong resistance for the index is around 7160-7170 above these levels bulls will explode and gates for higher target of 7270-7350 will be open.

State-run NTPC (BSE Code: 532555) reported 29.4% fall in its net profit at Rs 3,093.54 crore for the fourth quarter ended March 31, 2014. The country’s largest thermal power producer had posted a net profit of Rs 4,381.61 crore in the corresponding period last fiscal. Total income of the company rose to Rs 78,921.66 crore from Rs 72,098.09 crore in the same period last year. The stock may witness some selling pressure in today’s trade.

Essar Ports (BSE Code: 500630) will finally start executing four port projects that were stuck for several years amid pending regulatory approval and lawsuits, its managing director Rajiv Agarwal said. Essar Ports, which has already spent Rs. 8000 crore in expansion, will spend another Rs. 3000 crore in the next three years to complete these projects. The projects will increase cargo handling capacity by 77 million tonnes per annum to the 181 mt capacity. The stock may remain in limelight in today’s trade.

The Delhi High Court today sought response of the Centre and Reliance Industries (BSE Code: 500325) on a plea by state owned Oil and Natural Gas Corporation (BSE Code: 500312) which has accused the Mukesh Ambani-led group of exploiting gas from its natural gas block in Krishna-Godavri basin. Justice Manmohan issued notice to the Ministry of Petroleum and Natural Gas, Directorate General of Hydrocarbons and RIL on ONGC's petition in which the PSU has contended that RIL has drawn out 18 billion cubic meters of natural gas from the combined reserves of both companies since 2009. Both the stocks may remain volatile in today’s trade.

Budget carrier SpiceJet (BSE Code: 500285) announced another sale offer, sixth in a row since January, with all-inclusive fares as low as Rs 1,899 from select cities including Chandigarh, Guwahati, Jaipur and Lucknow. This is along with benefits that include better timings and increased frequency. Booking dates for the current three-day offer starts from today and for travel between July 1 and September 30, 2014. The stock may remain in focus in today’s trade.