Index Trends And Stocks In Action For July 17, 2013

Indian Equity market ended at day’s high extending the rally for second consecutive trading session after Reserve Bank of India relaxed financing norms for infrastructure development and affordable housing. The rally was so intense that not a single sectoral index ended in the red. Realty index was top gainer followed by Banking and the Metals. On daily chart Nifty has managed to close above its 21-day EMA, this suggests trend reversal for short term from negative to positive.

Now going forward next hurdle for the index on upside is around 7685, if index manages to cross this hurdle than it would be first sign that we will cross the budget day’s high and will make a fresh life time high in medium term. On downside 21-day EMA will act as very crucial support which stands at 7596. Going forward after a strong rally market will enter into consolidation phase and will move in narrow band of 7580-7660.

Engineering firm Larsen & Toubro (BSE Code: 500510) said its technology services arm has bagged a contract from AkzoNobel to provide technical assistance to drive the latter's engineering excellence and reduce its capital expenditure. L&T Technology Services will provide engineering services for capex projects by executing non IP-sensitive engineering activities in the front-end engineering design and in the detailed design phase. The stock may remain in focus in today’s trade. 

Sagar Cements (BSE Code: 502090)  said its Board of Directors approved the sale of its entire 47% stake in Vicat Sagar Cement Private Limited for Rs 435 crore (Rs 66.68 per equity share) to Parficim SAS, France, an affiliate of Vicat SA, France. Vicat Sagar Cement is a joint venture between Sagar Cements and French cement maker Vicat. The stock may trade with a positive bias in today’s trade.

In a big relief to billionaire Gautam Adani-promoted Adani Ports and Special Economic Zone (BSE Code: 532921), the Union Ministry of Forests and Environment (MoEF) has granted environment clearance to its special economic zone (SEZ) spread across 8,481 hectares in Mundra taluka of Kutch district of Gujarat. The union government also accorded coastal regulation zone (CRZ) clearance to setting up of desalination plant, sea water intake, outfall facility and pipeline. The stock may witness some buying activity in today’s trade.