Index Trends And Stocks In Action For July 02, 2014

Indian Equity markets ended on a firm note on Tuesday, extending gains for the third successive session. Sentiment was lifted by better than expected auto sales numbers followed by positive cues from the Asian and European markets. Metals stocks were in limelight after china’s official PMI rose to 6 months high in June. Nifty has formed a spinning top candlestick pattern on daily chart; this is single stick indicator representing an intense conflict for control between bulls and bears. The real body is relatively small and upper and lower shadows relatively large. Fresh up-move in Nifty index is expected only if Nifty manages to cross its hurdle of 7655 and if it does so it’s likely to touch 7710. On downside 7585 will act as support and next support at 7565.

Construction firm Larsen & Toubro (BSE Code: 500510) has won a contract worth Rs 2,442 crore from state-owned BSNL for telecom works across the country. The contract is for supply, trenching, laying, installation, testing and commissioning of optical fibre cable network which will establish optical national long distance backbone and optical access routes for the defence network. The mega network will be deployed with optic technology which will form the backbone optical highway infrastructure and serve as a communication media for the defence sector. The stock may trade with a positive bias in today’s trade.

Karnataka Bank (BSE Code: 532652) is targeting an agricultural advance portfolio of Rs 5,515 crore by March 2015. The portfolio of Rs 5,515 crore will constitute more than 18% of the total advance of the bank. At present, the bank has 10 agriculture development branches, 142 rural branches and 51 agriculture field officers as dedicated resources for agricultural advances. The bank has plans to open 75 new branches across India during the current fiscal. Of this, at least 29 branches will be opened in rural areas to give further thrust to agricultural advances. The stock may remain in focus in today’s trade.

ITI (BSE Code: 532610) has bagged two advance purchase orders from BSNL amounting to Rs 2,984 Crore. The orders are part of Network For Spectrum (NFS) project for establishment of Optical Fibre Network throughout the country. It said ITI is the only Central Public Sector Undertaking to bag two packages out of seven packages for NFS tender against stiff competition from multiple players. The stock may witness some buying interest in today’s trade.

Aban Offshore (BSE Code: 523204) is slated to raise around Rs 2500 crore through Qualified Institutional Placement (QIP). The company has fixed floor price of Rs 731.97 per equity share. After nearly five years the company is raising the money. The company will utilise the proceedings mainly to repay its debt, which is over USD 2.4 billion. The company has adopted the preliminary placement document for raising upto Rs 2,500 crore through of equity shares. The company has announced floor price of Rs 731.97 per equity share for the QIP and authorised the QIP on June 30, 2014. The stock may remain in action in today’s trade.