Index Trends And Stocks In Action For July 09, 2014

Indian Equity market after hitting new life time high in early trade, the benchmark indices retreated and then kept sliding deeper and deeper into red territory on Tuesday, and ended the session on a miserable note, suffering one of their worst setbacks in last nine months. Investors and traders turned quite cautious, choosing to wait for the Union Budget and first quarter earnings report from Indian Inc. Nifty has formed a bearish engulfing candlestick on daily chart, which is negative for the index. 

On other hand few positive points which suggest that Nifty might see a bounce, first Nifty has managed to hold on to its important support level of 7580, which is its 21-day EMA. Second Nifty created a gap on July 02, 2014 and this gap has been filled now. So if the bulls manage to hold on to support of 7580, we could see a bounce back. On the way up Nifty will face resistance around 7680-7700. On downside important support is around 7580 and 7545.

Kesoram Industries (BSE Code: 502937), which is in the middle of restructuring its cement and tyre business, is hoping that the cement demand would pick up in the coming months as the overall mood of the country remains bullish. The company, however, remained mum on the progress of the reorganisation exercise. The cement demand was likely to rise and prices had already started going up since the last one month. During the last fiscal, demand was flat for most of the cement majors. As a consequence, Kesoram had to undertake a price cut of about Rs 300/tonne on a year-on-year basis. The stock may remain in action in today’s trade.

Finance Ministry is considering to sell 5% stake in ONGC (BSE Code: 500312) in the current fiscal, which could garner about Rs 17,000 crore to the exchequer. At the current market price, a 5% stake sale would fetch about Rs 17,000 crore to the exchequer. The government currently holds 68.94% stake in ONGC. The stock may trade with a positive bias in today’s trade.

GMR Infrastructure (BSE Code: 532754) has raised Rs 1,477 crore through issuing shares to qualified institutional investors. The leading infrastructure player has raised the amount by selling shares at Rs 31.50 apiece, lower than the set floor price of Rs 33.14 per share. The stock may remain in limelight in today’s trade.