Index Trends And Stocks In Action September 03, 2014

The Bull Party continues on Dalal Street, first two days of the new month saw the nifty galloping by almost by 150 points. Nifty index hits the 8100 mark while the BSE Sensex closed above the 27,000 mark for the first time. The Pharma, Oil & Gas, Banking, Realty stocks were among the top gainers. Even the Mid-cap and the Small-cap stocks were in demand. However the metal stocks remained muted as the Supreme Court announced that it would next hear coal block allocation case on September 9, 2014. Nifty continues its higher top higher bottom pattern. The RSI which is a momentum oscillator has reached at the highest level, indicating some pause or consolidation. So our sense is that market may enter into consolidation phase and move in band of 7930-8130 for time being. For day trader important level on downside to watch out is around 8035 and next level is 7990. On upside hurdle for nifty is around levels of 8130 and next hurdle is around 8159.

NMDC (BSE Code: 526371) has subscribed to its full entitlement of shares of the rights offer of Legacy Iron Ore. Following the allotment, NMDC’s holding has risen to 115.34 crore shares with a voting power of 78.56% in Legacy Iron Ore.  The stock may trade with a negative bias in today’s trade.

Fortis Healthcare (BSE Code: 532843) will seek shareholder approval to raise up to $500 million through equity and debt at its AGM to be held on September 24. The company has already received the board of directors' approval to an enabling resolution to help it raise $500 million. The stock may trade with a negative bias in today’s trade.

Sesa Sterlite’s (BSE Code: 500295) borad meet will be held on September 05, 2014 to consider enabling approval for - Raising of funds through issue of securities including convertible debentures, bonds, warrants, NCDs, etc. The company will be needing funds for various corporate purposes, including expansions at its different operations. The stock may trade with a negative bias in today’s trade.