Index Trends And Stocks In Action October 16, 2014

The Indian market ended with modest losses on Tuesday. Banking and Power stocks were the only gainers among the sectoral indices. The Realty sector was the top loser declining over 9% as DLF plunged over 28% after SEBI banned DLF and Six of its top executives including chairman KP singh from accessing stock markets for a period of 3-years. In last couple of trading session it’s evident that market participant are uncomfortable creating new long position at higher level and pullback are used to book profit. So this indicates that its matter of time that nifty will break its range on lower end and this point is supported by the momentum oscillators RSI which is hovering around levels of 30 and it’s lowest since Febuary, 2014. On downside first important support is around 7800 and next major support is placed around 7770. On upside bulls needs to sustain above levels of 7940 to gain strength for further up move.

Gujarat State Fertilizers and Chemicals (BSE Code: 500690) reported a 23% increase in net profit at Rs. 124 crore for the quarter ended September 2014 as against Rs 101 crore for the corresponding quarter of the previous fiscal. The statement further said that the company achieved the highest turnover in the second quarter over the last five years. Its sales turnover for the second quarter stood at Rs 1,482 crore as against Rs 1418 crore in the corresponding period of the previous financial year. The stock may trade with a positive bias in today’s trade.

Mindtree (BSE Code: 532819) reported net profit for Q2FY15 grew 6.8% on Y-o-Y basis to Rs 137.4 crore and on a Q-o-Q basis it rose to 6.2%. Revenue for the quarter was up 15.5% on a y-o-y basis and 5.3% on Q-o-Q to at Rs 888.6 crore. By the end of the September quarter the total client count had touched 200. The company also managed to increase it large client base. The $30 million client group saw an addition of four clients, the $20 million went up to seven and $5 million client segment was at 27. Mindtree added 810 employees (gross) for the quarter taking its total headcount to 13,018 with an attrition of 15.7%. The stock may remain in focus in today’s trade.

Bajaj Holdings (BSE Code: 500490) reported second-quarter consolidated net profit, after minority interest and share of associates, of Rs.510.04 crore, compared with Rs.459.98 crore in the year ago quarter, an increase of 11%. For the quarter, the company's net income from operations more than doubled to Rs.184.61 crore from Rs.89.81 crore for the same period last year, while other income stood at Rs.31.06 crore, compared with Rs.2.45 crore a year-ago. The stock may remain in focus in today’s trade.

Tata Steel (BSE Code: 500470) has announced the signing of a Memorandum of Understanding with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its Long Products Europe business and associated distribution activities. Long products include rods and wires, bars, structural shapes and rails, and tubes. The stock may remain in focus in today’s trade.