Index Trends And Stocks In Action October 08, 2014

The Indian market continued its losing streak for second day and Nifty ended at two months closing low amid all round selling witnessed across sectors. Weak global cues dampened the outlook on the D- in our last write up we mentioned nifty is looking weak and its likely to test level of 7840-7820 and this was in line with our expectation. Nifty on daily chart has breached its 50-day EMA, which was acting as a strong support earlier. Now going forward 7820 is last hope for the bulls and this support level is breached expect market to enter into medium term downtrend. In that case 7750 would act as a support level on downside. On upside nifty will face resistance around level of 7890 and next resistance around 7925.

National Buildings Construction Corporation (BSE Code: 534309) has bagged the order from IIT Kanpur for major construction works such as Engineering Core Lab, Research Complex (Phase-I) and retrofitting of Aerospace Engineering block multistoried building for Rs 337.97 crore. The stock may remain in focus in today’s trade.

Ultratech Cement (BSE Code: 532538) is looking at possible acquisition of Jaypee Group's three cement plants in Madhya Pradesh in a deal that could be worth about Rs 5,500-6,000 crore. In the June quarter, UltraTech had completed the acquisition of Gujarat units of Jaypee Cement Corp comprising an integrated unit at Sewagram and a grinding unit at Wanakbori with a combined capacity of 4.8 million tonnes per annum. The stock may remain in focus in today’s trade.

JBM Auto (BSE Code: 532605) has set 8th October as the ex-date for bonus shares and stock split. The company has proposed to reward its shareholders with 1:1 bonus and reduce the face value of the stock from Rs 10 to Rs 5. The stock on Tuesday closed at Rs 1080. JBM Auto has climbed over 18 times from Rs 65 levels since January 1. Those buying the shares from Wednesday will not be eligible to receive bonus or stock-split shares. The stock may remain in focus in today’s trade.