Index Trends And Stocks In Action For July 14, 2014

Indian Equity market ended near day’s low on Friday as the Nifty slipped below the 7,500 mark. Market plunged after media reports stated the government reiterated that General Anti-Avoidance Rules (GAAR) will be applicable from April 1, 2015. Market was hoping the government would defer GAAR to 2017. In our last write up we mentioned this is sell on rise kind off market and this was in line with expectation.

Now going forward Nifty has strong support in zone of 7420-7430, if Nifty breach this support than it will open up for at least 150 points correction and likely to touch levels of 7200. On upside 7535 will act as a stiff resistance and next resistance is around levels of 7580. As long as Nifty trades below 7580, short term trend would be negative.

Tata Motors (BSE Code: 500570) reported a 10.46% decline in global sales, including that of Jaguar Land Rover (JLR), to 75,623 units in June. The company had sold 84,458 units in the same month last year. In the passenger vehicles category, the global sales last month were at 44,239 units, as against 42,881 units in June 2013, up 3.16%. The stock may trade on a volatile note in today’s trade.

Sun Pharmaceutical Industries (BSE Code: 524715) recalled about 40,000 bottles of anti-depressant Venlafaxine Hydrochloride for failing a dissolution test, the US Food and Drug Administration said. The recall was made by Sun Pharma's US subsidiary Caraco Pharmaceutical Laboratories for drugs manufactured in the company's Indian facility. The stock may witness volatile trade in today’s session.

Tata Power (BSE Code: 500400), which is pursuing "aggressive growth plans", has sought shareholders' nod to raise up to Rs 7,000 crore through issue of non-convertible debentures. Besides, the leading private power utility has proposed increasing its borrowing limit to Rs 27,000 crore. Approval has been sought for raising up to Rs 7,000 crore through issue of non-convertible debentures (NCDs) on private placement basis, according to notice sent out to shareholders for company's annual general meeting to be held on August 13. The stock may remain in limelight in today’s trade.

Riding on the strategy of focusing on first time buyers and rural markets, country's largest carmaker Maruti Suzuki India (BSE Code: 532500) has increased its market share in passenger vehicle segment in the first quarter of the current fiscal to 42%. In the April-June period, the company sold 241,812 units of passenger cars and utility vehicles out of an industry total of 573,038 units, garnering 42.19% market share. During the same period last fiscal, MSI had sold 222,645 units of passenger car and utility vehicles out of industry total of 558,416 units, securing a market share of 39.87% in the period. The stock may witness buying interest in today’s session.