Index Trends And Stocks In Action For August 08, 2014

Indian Equity market witnessed a highly volatile trading session the benchmark indices registering their second straight day of losses. The indices which flirted in the green zone for a while saw a sudden bear attach in the second half of trading session. The IT stocks led the decline today after Cognizant Technology lowered its annual revenue growth estimates. The broader market witnessed selling pressure and ended lower.

On daily chart Nifty has formed gravestone doji, this candlestick is formed when the open, low and close are about same price. The most important part of the gravestone Doji is the long upper shadow. The long upper shadow is generally interpreted as market is testing to find where supply and potential resistance is located.  Now going forward 7625 is important support and if bulls failed to defend this support level next important support is around 7570. On upside resistance is around 7670 and next resistance is around 7715.

Amtek India (BSE Code: 532282) the country's biggest iron casting company, has formed an equal joint venture with Tokyo-based Riken Corporation to build an iron casting foundry at Bhiwadi in Rajasthan. The joint venture, Amtek Riken Casting, will consolidate Amtek's hold over the iron foundry business, the new company will initially produce 15 lakh iron camshafts a year for the automobile industry. The stock may remain in focus in today’s trade.

India Cements (BSE Code: 530005) has reported a net loss of Rs 3 crore for the quarter ended June 30, 2014, against a net profit of Rs 17 crore in the same period last year. Revenue was almost flat at Rs 1,226 crore (Rs 1,238 crore). The loss in the first quarter of this year was lower than the Rs 30.56-crore loss it reported in the fourth quarter of the last financial year. The management attributed the loss to ‘severe’ cost factors, including transportation. This is despite a nominal recovery in selling prices from June. The stock may witness volatile trade in today’s session.

FMCG player Marico (BSE Code: 531642) has decided to hold on to its prices in the first quarter of this financial year despite facing margin pressure due to input cost inflation. Last year the company took a 19% weighted average price increase during the April and June quarters due to spurt in copra prices. With copra prices peaking, the company is hoping some price correction in input costs will help it in holding on to prices. The stock may remain in limelight in today’s trade.