Index Trends And Stocks In Action August 19, 2014

Indian Equity market after a long break of three days started the fresh week on a strong note and managed to end at fresh life time high on Monday. After opening with smart gains, indices surged higher throughout the day led by gains in the Banking, Oil & Gas, Metals, Auto and Realty stocks. Sentiment got a boost as European markets opened in green. Broader markets continued to outperform the benchmark indices. Nifty managed to break its most vital hurdle of 7820-7825 on closing basis.

On daily chart Nifty has formed a bullish marubozu, this candlestick has a large white body with no or small wicks on either side. It is considered to be extremely bullish candlestick pattern. So going forward the momentum on buy side is likely to continue.  On upside Nifty will face resistance around levels of 7910 and next level is around 7938. On downside level of 7820-7800 will act as important support and as long as bulls manage to hold this level dips should be bought.

HCL Technologies (BSE Code: 532281) has bagged a deal worth about AUD 35 million (over Rs 198 crore) from Sydney Trains to support and maintain 107 of its business applications. It marks the first time HCL has partnered with Sydney Trains on this specific program of work. The work would be performed offshore under the new contract; a number of the previous 11 vendors had also been located offshore and used offshore models to support the applications in scope. The stock may trade with a positive bias in today’s trade.

After oil, Cairn India's (BSE Code: 532792) prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 Trillion cubic feet (Tcf), over half of which can be produced. Currently sells 8-9 million standard cubic feet per day (mmcfd) of gas from the Raageshwari Deep gas field, which it plans to more than double to 22 mmcfd with invest $200 million by the end of FY15 and take it to 90 mmscfd by FY16. Cairn, which is investing $3 billion in raising oil production from the Rajasthan block, produced 181,894 barrels per day of oil in April-June quarter while gas output doubled to 8 million standard cubic feet per day. The stock may witness buying activity in today’s trade.

JSW Steel (BSE Code: 500228) acquire smaller rival Welspun Maxsteel for about Rs 1,000 crore as India's third-largest steel maker seeks to source cheaper raw material, cut production costs and strengthen its presence in the northern and western markets. Welspun currently buys raw material from the global market, forcing it to sell sponge iron at cost price. The stock may remain in focus in today’s trade.

Inox Leisure (BSE Code: 532706) will look at acquisition possibilities if they fit the criteria. It is usually look at acquiring chains that have at least 15 to 20 screens, complinent the Inox presence in terms of geography and catchment and branding at par with Inox. After buying out Satyam, Inox now has three prime properties in NCR, besides some in Rajasthan and neighbouring states. The stock may remain in focus in today’s trade.