Index Trends And Stocks In Action For July 08, 2014

Indian Equity market had an excellent start to the week as market yet again ended at fresh life time high ahead of the Rail budget which is due tomorrow. Today’s upswing was led by the IT, Telecom, Power and Capital Goods stocks. Even the Midcap and Small cap stocks ended marginally higher. On the other hand the banking and oil & gas stocks were under selling pressure. 

Going forward on the way up, the Nifty would, most likely face some resistance in zone of 7800-7838. On downside 7680-7710 would act as an important support zone for the Nifty index, unless this range is violated the index would maintain its bullish stance. Tomorrow being an event day we expect market to be volatile, but we could see some stock specific action.

Reliance Industries (BSE Code: 500325) has taken control of Network 18 Media & Investments and its subsidiary TV18 Broadcast (BSE Code: 532800), besides appointing HDFC chairman Deepak Parekh as an independent director on the Board of the media and entertainment firm. RIL has also appointed McKinsey senior advisor Adil Zainulbhai as independent director and Network 18 Media & Investments (NW18) former promoter Raghav Bahl as a non-executive director. Both the stock may remain in focus in today’s trade.

Reliance Communications (BSE Code: 532712) lost over two million users in May while market leader Bharti Airtel (BSE Code: 532454) added the most in the month which saw the country's overall subscriber base increase to 938.34 million, according to data released by the sector regulator. While Rcom, India's fourth largest carrier, ended May with 108.3 million subscribers, or an 11.9% share of the market at May end, Bharti Airtel added 1.65 million subscribers, taking its overall base to over 208 million and a 22.8% market share. Reliance Communication may trade with a negative bias while Bharti Airtel may trade with a positive bias in today’s trade.

Pharma major Cipla (BSE Code: 500087) will invest up to 100 million pounds (nearly Rs 1,030 crore) in UK over next few years for launch and development of new drugs as part of its global footprint expansion plans. The company will provide high quality affordable medicines to British National Health Service ( NHS). The stock may trade with a positive bias for today’s trade.

Mahindra Holidays & Resorts (MHRIL) (BSE Code: 533088) has signed definitive agreements with the shareholders of Finland-based Holiday Club Resorts Oy to acquire 18.8% of its shares, with a right to increase its ownership over a period of two years. The Mumbai-based company will pay euro 13 million for the stake including a primary infusion of euro 3 million. This will be followed by the balance of euro 10 million as secondary infusion to existing shareholders. The stock may witness some buying activity in today’s trade.