Index Trends And Stocks In Action For August 12, 2014

Indian Equity market bucked last week’s losing streak and saw buying across the broad. The Nifty reclaimed its 7600 mark the recovery was led by interest rate sensitive like Auto and Realty. Even the mid-cap and the small-cap stocks participated in the pullback. Nifty opened with gap up on back of positive cues from US markets and Asian peers.

Post gap up opening market oscillated in very narrow range and bulls failed to extend the gains post gap up opening. This led to formation of doji candlestick pattern on daily charts. Now going forward market might move in narrow band of 7540-7670. Big movement is expected, if index manages to break this range.  For day trading index has strong support around 7590 and next support is around 7540. On upside hurdle for bulls is around levels of 7670 if bulls sustains above this level its likely to test levels of 7710. 

Bajaj Auto (BSE Code: 532977) launched two bikes under the Discover range priced up to Rs 58,739 (ex-showroom Pune). Discover 150F is priced at Rs 58,739, while Discover 150S is available for Rs 51,720 for drum and 54,725 for disc variants. The stock may remain in focus in today’s trade. 

Jet Airways (BSE Code: 532617), India's no. 2 airline by market share, lost Rs 2.18 billion (USD 35.6 million) during the three months to end-June, less than a year earlier after its revenues rose and financing costs fell. The airline, 24% owned by Abu Dhabi's Etihad Airways, has now reported six straight quarters of losses, as it grapples with high costs, low fares and fierce competition in its home market. The stock may trade with a negative bias in today’s trade.

ONGC Videsh, the overseas arm of public sector oil explorer ONGC (BSE Code: 500312) has signed production sharing contracts for two onland exploration blocks in Myanmar. ONGC Videsh had participated in the Myanmar Onland Bidding Round 2013 and was awarded two onshore blocks – B2 and EP3 on October 10. The company already is a partner in two offshore blocks in Myanmar and Shwe Gas pipeline. The stock may remain in limelight in today’s session.

State-owned Hindustan Petroleum Corporation (HPCL) (BSE Code: 500104) reported a net profit of Rs. 46 crore in June quarter as compared to a net loss of Rs. 1,460 crore after it got compensated for almost all of the loss on fuel sales. HPCL lost Rs. 6,620 crore on selling diesel, domestic LPG and kerosene at government controlled rates in April-June quarter. Out of this, it got Rs. 2,516 crore from government as cash subsidy and another Rs. 3,609 crore from upstream firms such as ONGC, leaving an unmet loss of Rs. 495 crore. The stock may remain in action in today’s trade.