Index Trends And Stocks In Action September 08, 2014

The Indian market ended with modest losses amid volatile trading session on Friday. Buying interest was seen in Metal, IT and Capita goods stocks. On other hand Auto, Banking and FMCG stock were among the top laggards. Realty stocks which were under hammering in the previous trading session made a smart comeback. The broader market outperformed the benchmark indices. In our last write up we mentioned that market has entered into consolidation and market will move in narrow range for next couple of trading session, this was in line with our expectation. If we analyze last three candlesticks on daily chart, index is making lower top lower bottom pattern.  This is hints bulls have taken pause and looking for good dip to re-enter. Going forward important support for index is place around levels of 8020 and if bulls defend this level we can expect a bounce back. On upside first hurdle is around levels of 8125 and next hurdle is around 8150.

Shareholders of ING Vysya Bank (BSE Code: 531807) approved a proposal to raise up to Rs 700 crore through private placement of securities for a year, the bank said in a disclosure to the exchange. It also received shareholders’ nod for borrowing limit of Rs 20,000 crore. The stock may trade with a positive bias in today’s trade.

Apollo Hospitals Enterprise (BSE Code: 508869) plans to open 12 hospitals in the next three years that entail an investment of Rs 2,032.7 crore. As per the plan, the company will add 2,175 beds over next three years.  Already company has been invested of Rs 590.1 crore. Currently, the company’s chain has 50 hospitals with an estimated bed capacity of 8,617 beds. The stock may trade with a positive bias in today’s trade.

Deepak Fertilisers and Petrochemicals (BSE Code: 500645), through its subsidiary Smartchem Technologies, announced the launch of its overseas venture for mining services in Brisbane, Australia. STL, which set up a JV, Platinum Blasting Services Pty Ltd (Platinum), with local partners, will hold 65% stake. Over the next two years, Platinum intends to invest AUD28 million, through a mix of debt and equity. The stock may trade with a positive bias in today’s trade.

Dena Bank (BSE Code: 532121) is looking to raise Rs 1,200 crore this fiscal to meet its business growth of 18% during the same period. The company would be asking the government of India to reduce its holding from 58.01% to 51%. This reduction in equity would help it in giving preferential issue to other investors. The bank is looking to raise funds through bonds. The stock may remain in focus in today’s trade.