Index Trends And stocks In Action For June 02, 2014

Indian Equity market ended soft on back of profit taking in Banking stocks and Consumer durables. Nifty at the end of the day settled with marginal loss of 5 points at 7229. Healthy buying was seen in Healthcare stocks, Realty stocks and FMCG stocks. In our last couple of write up we have been mentioning that the index looks exhausted and its sell on rally kind of market in short term. If we look at last 11 trading session closing, 9 out 11 sessions market closed below its opening price, this is clear sign of bull liquidation taking place.

As of now, it looks that choppiness and correction will continue in coming session as well. This is supported by the fact that we have formed a bearish engulfing candlestick pattern on the Nifty index on weekly chart. Now going forward the index has strong support around zone of 7160-7170, if index fails to hold this support level then it can slide much further close to another important support zone around 7060-7020. On upside 7290 will act as a hurdle for the bulls and next hurdle in zone of 7330-7350.

Country's largest two-wheeler maker Hero MotoCorp (BSE Code: 500182) reported a 8% increase in its total sales at 6,02,481 units in May 2014. It had sold 5,57,890 units in the same month last year. The recent advertising campaign on Splendor iSmart has helped generate more awareness about our new i3S technology, leading the company to further expand its capacity of the model. The stock may trade with a positive bias in today’s trade.

Auto component maker JBM Auto (BSE Code: 532605) plans to set up a new manufacturing plant in Indore at an investment of Rs 100 crore and the new unit is expected to be operational later this year. The company, which today posted over two-fold rise in its net profit at Rs 22 crore for the fourth quarter ended March 31, 2014. The new plant will cater to its commercial vehicle customers through the new plant. The stock may remain in limelight in today’s trade.

Canara Bank (BSE Code: 532483) is targetting to reach an aggregate business of Rs 8.50 lakh crore during this fiscal with plans to add 1,250 branches, a top official today said. The bank was aiming to reach an aggregate business figure of Rs 8.50 lakh crore with a deposit growth of 16-17 per cent and advances growth of 19-20 per cent by March 2015. The stock may remain in action in today’s trade.

Domestic steel giant SAIL (BSE Code: 500113) which has undertaken a massive Rs 72,000 crore modernisation and expansion plan, will ramp up its capacity to 19.5 million tonnes (MT) by September. The present hot metal capacity of SAIL is 14 MT. The stock may remain in focus in today’s trade.

Expecting higher sales on a spurt in steel demand, Kamdhenu Ispat (BSE Code: 532741) is looking at an over 20% growth in its revenue at around Rs 1,100 crore in the current fiscal. The company which has interest in steel and paints, in 2013-14 clocked Rs 921 crore revenue, with steel business contributing around Rs 793 crore and the remaining coming from the paints division. The stock may trade with a positive bias in today’s trade. 

IVRCL (BSE Code; 530773) is planning to raise up to Rs 300 crore in two tranches to fund projects during 2014-15. The company's board, which met on Friday to review its financial results for the fourth quarter and 2013-14, has approved the proposal to raise this amount. The money will be raised through either a rights issue, preferential allotment or institutional placement. The stock may remain in focus in today’s trade.