Index Trends And Stocks In Action For August 18, 2014

Indian Equity market extended its winning streak for the fourth trading session. The upswing was so strong that barring Information Technology all the other sectoral indices ended in green. Realty, Capital goods, metals and the consumer durables were among the top gainers.

The Mid-cap and the small-cap index also witnessed strong buying and managed to outperform the benchmark indices after a long time.  As mentioned in our previous write up Nifty index would face resistance in zone of 7800-7810 and it did face supply around this zone and closed at 7792. Nifty is currently trading at crucial level; the index is nearing the upper band of the range. Now going forward if the index manages to sustain and close above band of 7820-7835, index is likely to see a good move on upside in short term about 80-100 points.

On other hand if Nifty again faced supply in this zone than the index would correct and take support at 7680 in short term and again the index will move in nagging range.  So Monday trading session would give a clear picture, as momentum is with the bulls and if they can get past supply zone of 7820-7835 it would start fresh move for the bulls on upside. For day trading key supports for bulls on downside is around levels of 7760-7725. On upside resistance is around 7820-7835. 

Consortium members of International Coal Ventures  – SAIL (BSE Code: 500113), RINL and NMDC (BSE Code: 526371) - will form a special purpose vehicle to buy Rio Tinto's Mozambique coal mines as other partners NTPC and Coal India are not keen on taking part in ICVL's maiden deal announced last month. ICVL, a five-member consortium of PSU firms, reached an agreement on July 28 with global mining giant Rio Tinto to buy its three coal mines, including an operating one, in the West African country for USD 50 million. ICVL has to pay the required sum within two months of signing the deal. The stocks may remain in limelight in today’s trade.

Chennai-based TVS Motor Company (BSE Code: 532343) is targeting regaining the third position in the country's two-wheeler market on the back of new launches in the current fiscal. The company, which has lined up scooter Zest and refreshed versions of motorcycle models Apache and Victor before the end of the current fiscal, is behind Hero MotoCorp, Honda Motorcycle & Scooter India and Bajaj Auto at present in the Indian two-wheeler market. The stock may remain in focus in today’s trade.

Telecom operator Reliance Communications (BSE Code: 532712) plans to cut down expansion cost and hive off some assets in its bid to reduce debt by about 37% to Rs 25,500 crore in the next 12 months. The Anil Ambani-led company plans to use the key infrastructure -- mobile towers and optical fibre -- of his elder brother Mukesh Ambani's company Reliance Jio Infocomm for future expansion rather making its own fresh investments. It will also have tight leash on its expenditure. The stock may trade with a positive bias in today’s trade.

CBI has registered a Preliminary Enquiry (PE) to probe into an alleged Rs 1,700 crore land deal between Tata Realty and Unitech (BSE Code: 507878) in 2007 to purportedly fund the latter's telecom project. Highly-placed sources in the agency said that the Supreme Court has been informed about the probe that was being conducted to ascertain the actual purpose of the land deal. The stock may trade with a negative bias in today’s trade.