Index Trends And Stocks In Action For July 10, 2014

Indian Equity market ended with losses for the second consecutive trading session ahead of Union Budget which is scheduled on Thursday. Traders and investors remained cautious and preferred to book profit or stay on the sidelines ahead of the mega event.  Nifty yet again managed to hold to its important support of 21-day EMA on closing. This suggests that Bulls are not ready to give up, since the Union Budget is still to come tomorrow, fond hope remains.

Now going forward important support for index stands at level of 7510 and next support is at 7460. In any case the index should not close below the level of 7460, if it does hopes of bulls for revival will diminish. On higher side 7640 would act as stiff resistance and once Nifty manage to sustain above this level 7690 will act as second resistance. We expect market to be highly volatile tomorrow.

Bharti Airtel (BSE Code: 532454) will sell over a fifth of its telecom tower portfolio in Africa to Helios Towers Africa (HTA), as part of its overall strategy to sell-off its 15,000 towers to a clutch of independent tower companies. The two companies didn't disclose the size of the 3,100-tower deal but, in a joint statement Wednesday, said that the proceeds would help Bharti Airtel pare debt. The stock may trade with a positive bias in today’s trade.

Kolkata-based Allahabad Bank (BSE Code: 532480) is planning to roll out its gold loan scheme – loan against gold jewellery as collateral – nationally. Currently, the scheme is operational in four southern states namely, Andhra Pradesh, Kerala, Karnataka and Tamil Nadu and, in Kolkata. It is expected to be rolled out in Nagpur by the end of this month. The gold loan scheme was rolled out in Kolkata on July 1, across 25 branches in the city and sub-urban areas. The stock may remain in focus in today’s trade.

Hinduja Group flagship company Ashok Leyland (BSE Code: 500477) has raised Rs 667 crore via qualified institutional placement (QIP), a move that would help the company improve its financial position. The capital raising comes on the back of a strong operating margin performance in Q4 - reflecting cost reduction and margin improvement measures, as well as the expectation of a turnaround in the domestic commercial vehicle market. The stock may trade with a positive bias in today’s trade.

JSW Steel (BSE Code: 500228) will import six million tonne (mt) of iron ore this year, the highest by any domestic steel producer ever, with the mining crisis in Karnataka and Odisha striking at the heart of the country's steel production capacity. While the first shipment of 1.75 lakh tonnes of high grade ore arrived from South Africa at Krishnapatnam port last week, three more shipments in capesize vessels are due to reach next week. With this the company is depending on imports to source nearly 20 per cent or upto one-fifth of its total requirement of 30 mt of iron ore per year. The stock may remain volatile in today’s trade.