Index Trends And Stocks In Action August 28, 2014

Indian Equity market ended flat amid a highly volatile trading day. The indices opened with minor gains. However as the day progressed selling pressure intensified and nifty index slipped well below 7900 mark. But the bulls manage to take support around levels of 7950 and took u turn in the closing hour led by gain in Healthcare, IT, Auto and FMCG stocks. Nifty on daily chart has formed bullish harami candlestick pattern, this hints reversal and continuation of previous trend. The momentum oscillators are indicating bullishness outlook. Unless the levels between 7850-7810 are broken decisively the bulls would retain their initiative. On upside fresh momentum is expected only if nifty cross hurdle of 7950-7960.

Piramal Enterprises (BSE Code: 500302) and Navin Fluorine International (BSE Code: 532504) have agreed to form 51:49 JV to develop, manufacture and sell speciality fluorochemicals with specific focus on applications in healthcare. In the first phase of development, the JV is expected to invest around Rs 120 crore in India. The company also mentioned that with the increasing importance of fluorine in life sciences, there is considerable potential to exploit synergies between the two partners. Both the stocks remain focus in today’s trade

Container volumes were up 9% Y-o-Y in July, a 32-month high and is positive given that the first quarter of the current fiscal had 5% de-growth. A favourable base and improvement in domestic and global sentiment is expected to aid volume growth in FY15-16.Container Corporation (BSE Code: 531344)  which has a 75% market share in the container rail-transportation segment, is also planning to develop multimodal logistics parks along the dedicated freight corridor to move up the value chain with three of them to be commissioned in FY15. The stock may trade with a positive bias in today’s trade.

Essel Propack (BSE Code: 500135) has sought shareholder approval to raise up to Rs 300 crore through an equity issue on private placement basis to qualified institutional buyers. Essel Propack has also sought approval to raise up to Rs 150 crore through debt and another Rs 150 crore by issuing debt securities. The stock may trade with a positive bias in today’s trade.