Index Trends And Stocks In Action For May 22, 2014

Indian Equity market ended its four day winning streak on Wednesday weighed down by profit taking in Banking stocks and capital good stocks. However buying was seen in technology stocks. The Nifty index settled at 7252 down by 22 points. Action was seen in broader market and both mid and small cap ended higher by 1%. Going forward on downside the Nifty index has support around levels of 7220 and next support is around 7170.

In case of profit taking or any bad news the index should not slip below the level of 7140, if it does than the gates for level of 6990-6950 would be open. On upside resistance is around 7330 and next resistance is around 7360. If index manages to sustain above 7360 than fresh up move could be seen in the index. Lately index has been trading in narrow range and this is bound to happen after a stellar run-up in short span of time,  so for time being index is likely to trade in a range  and action is expected in broader market as these stocks are left with some room for up move. 

Energy major Reliance Industries (BSE Code: 500325) plans to raise up to Rs 10,000 crore by way of debt in 2014-15 to finance its capital expenditure. RIL will seek shareholders' approval at its 40th AGM on June 18 to authorise the board to raise funds through non-convertible debenture in one or more tranches. The stock may remain in focus in today’s trade.

Wipro (BSE Code: 507685) has launched its ‘Finance and Accounting Business-Process-as-a-Service’ (F&A BPaaS) solution for enterprises in partnership with NetSuite. Wipro’s F&A BPaaS is built on the NetSuite platform, along with its process capabilities in finance and accounting, the company said in a statement. The solution empowers customers to selectively manage and control their finance and accounting processes on a standardised platform, enables rapid implementation of business processes, improves compliance standards, and provides operational readiness, leading to significant cost savings. The stock may remain in limelight in today’s trade.

IL&FS Engineering and Construction Company (BSE Code: 532907) has posted a net profit of Rs 33.59 crore for the quarter ended March 31, 2014 as against a loss of Rs 45.92 crore for the corresponding quarter. The Hyderabad-based construction company registered a total income of Rs 830.25 crore for the March quarter as against Rs 593.25 crore for the corresponding quarter last year. The stock may witness some buying activity in today’s trade.

According to media reports, Bajaj Auto (BSE Code: 532077) is likely to get a boost as the Egyptian government has lifted its two and three-wheeler import ban. The Egypt Cabinet authorised its ministry of finance to go ahead with the ban on February 12, a move primarily designed to give a leg-up to its fledgling automobile industry. Egypt constitutes a vital export market for Bajaj Auto, since it contributed 31% of the total three-wheeler exports and around 5% of the two-wheeler exports in 2012-13. Bajaj Auto is likely to get fresh orders for its products from Egypt. The stock is likely to trade with a positive bias in today’s trade.