Index Trends And Stocks In Action For June 20, 2014

Indian Equity market despite opening on a firm note on back of positive global cues, faded in mid morning session and slipped deeper into negative territory as the day progressed due to heavy selling in the oil space amid mounting tension in Iraq.   On other hand Information technology stocks had a good outing. In our last write up we mentioned market will move in this narrow band and major move is expected only if market breaks range of 7470 and 7680.

On daily charts Nifty has formed multiple supports in range of 7480-7500. Now as things stand, the bulls must hold on this support zone of 7470-7500 range. Any fall below this range would demolish the bulls and would open gates for 70-100 points correction. On upside distribution could be seen in range of 7590-7630. So to sum up trend for short term is sideways or no clear trend, a clear picture could be visible only if Nifty index manages to get out of this distressing range.

Cairn India (BSE Code: 532792) has said it will invest USD 200 million over the next three years in developing natural gas finds in the largely oil-bearing Rajasthan block. The USD 200 million investment during FY2015-17 will be towards developing existing Raageshwari Deep Gas field and associated field facilities and pipeline. The stock may remain in limelight in today’s trade.

Oil India (BSE Code: 533106) the second biggest state-run explorer in the country, signed an agreement with Russia's Gazprom for joint pursuit of exploration opportunities across the globe. Through the memorandum of understanding (MoU), OIL and Gazprom plan to jointly participate in upstream oil and gas exploration and production opportunities in different parts of the world as well as collaborate on LNG. The stock may trade with a positive bias in today’s trade.

Capital market regulator SEBI allowed non-promoters of listed companies to tap the Offer for Sale (OFS) route, a move that paves the way for government to divest its residual stake in Hindustan Zinc (BSE Code: 500188). In its board meet today, SEBI allowed non-promoters with more than 10% stake in the company to tap OFS route. The stock may witness some buying activity in today’s trade.

GMR Infrastructure (BSE Code: 532754) won arbitration proceedings in the Male airport case and the tribunal has asked the Maldivian government and airport company are liable to pay damages and USD 4 million in legal costs to GMR. Lord Hoffman's Tribunal in Singapore said the concession agreement was valid and binding and was not void for any mistake of law or discharged by frustration, according to an exchange filing by the GMR Group. The stock may remain in limelight in today’s session.