Index Trends And Stocks In Action For June 30, 2014

Indian Equity markets ended the last trading session of week on Friday with modest gains. Selling pressure in the metal, auto, banking and the capital goods stocks in mid afternoon session dragged the Nifty index below 7500 mark. However, the index managed to bounced back and end above 7500 mark as buying emerged in Information technology, healthcare and telecom stocks. Nifty on daily charts has formed a doji candlestick pattern near 21-day EMA, the 21-day EMA act as good short term support for the index.

Now going forward if Nifty holds this 21-day EMA support which is placed at 7480 level, we expect a bounce back. However, fresh movement in the index will be seen only if Nifty index manages to sustain above 7610.  On downside 7480-7470 will act as a strong support for Nifty, once Nifty index breaks this support expect it to touch levels of 7440. 

Shareholders of the public sector Indian Overseas Bank (BSE Code: 532388) approved its proposal to raise Rs 1,200 crore through qualified institutional placements (QIP). The shareholders approved the proposal during the 14th Annual General Meeting of the bank. The stock mat remain in focus in today’s trade.

State-owned NTPC (BSE Code: 532555) is likely to commence production from its two captive coal mines -- Chatti-Bariatu and Kerandari -- in Jharkand by June 2016. However, its another mine -- Chatti-Bariatu (South) -- in the eastern state will be developed by 2038. The three coal blocks were earlier forfeited from the state-run company as it failed to develop them within the stipulated timeframe. However, the blocks were later given back to the power producer. The stock may remain in limelight in today’s trade.

Two popular consumer healthcare brands in the domestic market are changing hands. Around 10 years after Ahmedabad-based Cadila Healthcare (BSE Code: 532321) started manufacturing and distributing Dulcolax and Buscopan, these gastro medicines have now been transferred back to MNC firm Boehringer Ingelheim (BI) after talks between the two failed earlier this year to extend the partnership. It is learnt the German company is re-launching the drugs, but with new names, sources said. The drug Dulcolax has been renamed and launched as 'Dulcoflex' in the retail market. Both the brands — leaders in their respective therapeutic areas — together are valued around Rs 70-80 crore. The stock may trade with a negative bias in today’s trade.

Looking for a larger role in the global oil and gas scene, ONGC (BSE Code: 500312) wants to participate in transnational hydrocarbons pipeline projects. The company, which has an understanding with Russia’s Rosneft for oil and gas explorations in offshore Arctic, now wants to tap opportunities in direct transportation of hydrocarbons from Russia and Central Asia to India. The stock may trade with a positive bias in today’s trade.