Index Trends And Stocks In Action For July 01, 2014

Indian Equity markets ended with stellar gains on first trading day of the week. The Nifty index re-conquers magical mark of 7600. Today’s rally was led by Power, Capital Goods, Banking and the Healthcare stocks. The buying momentum was so strong that not a single sectoral index ended with losses. The broader market outperformed the benchmark indices. In our last write up we mentioned that Nifty index is due for big bounce and this was in line with our expectation.

The bulls again manage to defend its strongest support of 7470, this suggest that the bulls are still in the commanding situation. Now going forward bulls need to clear strong supply zone of 7635-7655 and once Nifty index sustains above this zone, expect a fresh wave of up move will began and this will take Nifty to new heights. On downside immediate support for the Nifty index stands at 7570 and next crucial support is around 7518.

Multiplex operator Inox Leisure (BSE Code: 532706) is in talks with Satyam Cineplexes to buy the Gurgaon-based rival, a move which would expand its foothold further in the film exhibition market in the northern region. According to sources, Inox is in talks with Satyam Cineplexes to acquire its movie exhibition business.  The stock may trade with a positive bias in today’s trade.

HUL (BSE Code: 500696) chairman Harish Manwani at the company’s annual general meeting said he is convinced that business focussed on consumers will grow. However, there are no definitive comments in terms of what he is seeing going ahead in 2014, but he did say that he was confident that despite the fluctuations and volatility that is there currently in the economic environment he was confident that the consumer business would see growth. The stock may remain in focus in today’s trade.

Karnataka Bank (BSE Code: 532652) aims to achieve an export credit target of Rs 3,450 crore during 2014-15 as per the management. With the economy showing signs of easing, Karnataka Bank would proactively extend the required banking facilities, including credit, to its forex clients and aim to achieve an export credit target of Rs 3,450 crore. The stock may remain in limelight in today’s trade.

Reliance Industries (BSE Code: 500325) will defer investments in developing newer fields like R-Cluster in KG-D6 block if the government does not hike gas prices to make them economically viable to produce. RIL's Dhirubhai-34, or R-Cluster field, in the flagging KG-D6 block was to produce about 13 million standard cubic metres per day of gas, equivalent to present day output from D1&D3 as well as MA fields, by 2017-18. The stock may witness volatile trade in today’s trade.