Index Trends And Stocks In Action September 05, 2014

The Indian market ended in red for the first time in last seven trading sessions on back of profit booking at higher levels. Barring defensives like the FMCG and the Pharma Stocks all the other major sectoral indices ended in the red. In our last write up we mentioned index may take a pause and enter correction consolidation phase and this was in line with our expectation. Nifty failed to cross the high which was made on 03rd September and ended below the previous closing price of doji candlestick pattern which was formed on Wednesday. This hints that market has entered into small corrective swing phase. Going forward important support for index is in range of 8068-8060, if index fall below this level than next important support is around level of 8030. On upside the index will face resistance around 8120 and next hurdle is around level of 8150.

Infosys (BSE Code: 500209) has signed a five-year group-wide IT outsourcing services contract with British Petroleum. The scope of the engagement will include application support, development as well as enhancing business applications for all of BP's key IT operations. Although the company did not disclose the value of the contract, industry experts believe it is an extension of the existing contract Infosys signed with BP with some new elements of engagements. The stock may trade with a positive bias in today’s trade. The stock may remain in focus in today’s trade.

JSW Steel (BSE Code: 500228) is considering buying the Ilva steel plant in Italy. Ilva, privately-owned by the Riva family, is Europe’s largest steel plant by output capacity and is of strategic importance to the southern European steel sector, where it supplies carmakers and other manufacturers. The Taranto plant, however, is at the centre of an environmental scandal which led the Italian government to place it under “special administration”, a procedure designed to save large companies and avoid big job losses. JSW Steel, express interest in Ilva, according to the sources.

Belgium-based EcoPhos has joined hands with Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) (BSE Code: 500670) for manufacturing di-calcium phosphate (DCP) in Gujarat. Two companies have signed a memorandum of understanding for setting up a 1,50,000 MT per annum animal feed grade di-calcium phosphate plant at GNFC TDI Dahej site, Gujarat. The stock may trade with a positive bias in today’s trade.