Index Trends And Stocks In Action For June 16, 2014

Indian Equity market ended near day’s low on Friday with the Nifty index slipping almost by 1.5 per cent. After opening with a positive bias market were unable to sustain at higher levels as selling across the sectors dragged the indices sharply. The Nifty index which managed to hold on to levels of 7570-7580 for last couple of session finally broke this important support on closing basis. So the short term trend turns negative. Now going forward index has crucial support around levels of 7480. If Nifty manages to hold this support level, than a pull back up to levels of 7560-7570 cannot be ruled out. On upside, this range of 7560-7570 will act as resistance levels for the bulls.

Hero MotoCorp (BSE Code: 500182) India's largest two-wheeler maker, is looking to start selling bikes in the US next year, hoping to create a niche market for its products. The company, which entered as many as 18 global markets in the past one-and-a-half years, is confident that its motorcycles will be accepted well in the US. The stock may remain in focus in today’s trade.

State-owned power producer NTPC (BSE Code: 532555) will soon invite bids to develop its Pakri-Barwadih coal block in Jharkhand. NTPC has already cancelled Rs 23,000-crore contract with Thiess Minecs India to develop this block due to delays. The stock may remain in limelight in today’s trade.

Mahindra & Mahindra (BSE Code: 500520) is again in the race to acquire a stake in Swedish premium car maker Saab. M&M, maker of the utility vehicle range (Scorpio, Xylo and XUV500) and the Verito brand of cars may become a part-owner (with the Hong-Kong based National Electric Vehicle or NEV, its current owner, as the bankrupt car maker needs funds to maintain operations. The stock may trade with a positive bias in today’s trade.

Infrastructure finance company IDFC (BSE Code: 532659) which recently bagged a commercial banking licence, plans to start bank operations by October next year. IDFC and Bandhan emerged successful out of about 25 contenders for new bank licences issued by the RBI in April. Earlier this month, IDFC decided to come out with a follow-on public offer so as to bring down foreign shareholding in the company below 50 per cent. The stock witness some buying interest in today’s trade.