Index Trends And Stocks In Action For May 26, 2014

Indian Equity market surged on the last trading day of the week led by India’s biggest commercial bank in terms of branch network SBI surged to 52-week high as the bank’s sticky loans declined on sequential basis in Q4. The Nifty index gained 91 points. Mid cap and Small caps ended the day on stronger note closing higher by more than 1%. Nifty after trading in range for 4-5 trading formed a big bullish candlestick along with rise in volume.

So, finally bulls are taking over and resuming the uptrend. Now going forward Nifty has strong resistance around levels of 7425 and next resistance is around 7480. On downside 7250 will act as a critical support level once this level is take out next support would be around 7170. The uptrend remains intact as long as bulls hold on to levels of 7170.

Financial Technologies India (BSE Code: 526881), the promoter of commodity bourse MCX (BSE Code: 534091) with 26% stake in it, will meet on May 30 to review the process of divestment of its stake in the bourse, the company said after a board meeting on Saturday. It added that talks were on with bidders that its investment banker expects "finality to the transaction" if there are "no new developments." The stock may remain in action in today’s trade.

Providing relief to pharma giants Sun Pharmaceutical Industries (BSE Code: 524715) and Ranbaxy Laboratories (BSE Code: 500359), the Andhra Pradesh high court on Saturday vacated stay orders it issued last month on the merger of two firms that would create world's fourth largest medicines producer. The merger was considered the largest in the Indian pharma sector involving USD 4 billion (Rs 24,000 crore). Both the stock are likely to trade with a positive bias in today’s trade.

Tata group firm Trent  (BSE Code: 500251) which formed a venture for multi-brand retail with Tesco, is contemplating launching different formats, including mid-sized stores, for 'Star Bazaar' to achieve profitability faster. The stock may witness buying interest in today’s trade.

Housing Development and Infrastructure (BSE Code: 532873) (HDIL) plans to raise up to Rs 1,800 crore this fiscal by selling stakes in some of its assets to partly repay its debt by around Rs 600-700 crore in FY15. The realty firm wants to sell off its 100-acre land parcel in Hyderabad and some of its commercial projects in Mumbai this fiscal. The stock may remain in limelight in today’s trade.

Taking a decision on the restructuring of state-owned CIL (BSE Code: 533278) for improving its operational efficiency is among the key points of an action plan that has been prepared by the Coal Ministry for the sector. The plan comes ahead of the BJP government, headed by Narendra Modi, taking charge on Monday. CIL, which has 7 subsidiaries, has been drawing flak from various quarters for missing its production target in 2013-14. The stock may remain in action in today’s trade.

Diversified conglomerate Aditya Birla Nuvo (BSE Code: 500303) (ABNL) will invest Rs 350 crore in its financial services business in the current fiscal. The company, however, has not specified which segments in its financial arm --Aditya Birla Financial Services (ABFS)-- will receive capital infusion. The stock may remain in focus in today’s trade.