Index Trends And Stocks In Action For July 16, 2014

Indian Equity market ended with strong gains on Tuesday as shares from rate sensitive surged higher on back of strong data showing a drop in consumer price based inflation. Slight encouraging report on the monsoon front and the news of the government selling a 5% stake in ONGC aided sentiments. The index have been falling since the day of the railway budget and in this process it has corrected more than 300 points without a single day closing in green.

In today’s trading session the bulls managed to close on a positive note with the help of banking stocks. Now going forward it’s important for index to sustain above 7580 level as its 21-day EMA and index if manages to sustain above this level than we can see this rally continuing up to 7680-7710. On downside 7480 and 7420 are important support level for index. If in any case the index break important support of 7420 than we can see fresh wave of selling.

National Buildings Construction Corporation (BSE Code: 534309) has informed that in the Budget speech, Hon'ble Chief Minister, Government of Rajasthan announced to form a Joint Venture (JV) Company with National Buildings Construction Corporation Limited (NBCC) to execute various re-developmental works and construction projects in the State of Rajasthan. In this regard , signing of agreement is in advance stage. The stock may trade with a positive bias in today’s trade.

Domestic budget carriers SpiceJet (BSE Code: 500285), Indigo and GoAir rolled out another sale offer with fares starting from Rs 1,699 for a limited period on domestic routes yesterday. The travel period for the three-day sale, which commences from today, will remain valid between August 18 and September 30. The stock may remain in focus in today’s trade.

IT firm NIIT Technologies (BSE Code: 532541) net profit declined 18.7% to Rs 43.2 crore (Rs 53.2 crore) in the April-June quarter 2014 on account of revaluation of current assets and liabilities due to rupee depreciation. Its consolidated revenue, however, grew 6.6% to Rs 577.6 crore in the said quarter from Rs 541.9 crore in the same period last fiscal. Operating margins declined 171 basis points to 13.4 per cent, primarily due to wage increase during the quarter. The stock may remain volatile in today’s trade.

With the consumer sentiments in the auto sector started picking up, Maruti Suzuki India (BSE Code: 532500) is eyeing a double digit growth in its sales in the current fiscal. The company has already registered a 10% growth in the first quarter and attaining a double digit growth especially during this auto slowdown period is a good sign when the overall industry growth was flat. The all India market share was 42 per cent. The stock may remain in focus in today’s trade.