Index Trends And Stocks In Action October 27, 2014

The Indian market ended above psychological mark of 8000 on auspicious day of Samwat 2071. The broader market outperformed the benchmark index. On daily chart nifty is trading near crucial resistance point. The zone of 8018-8045 is crucial resistance for the nifty index. Once nifty manages to sustain above this zone fresh buying is likely to emerge and it may trigger short covering and this will help index to climb up to levels of 8120 in short term. However if index takes resistance at this level and breaks important support of 7900 we could head lower up to levels of 7750 in short term. For day trading nifty will face resistance around levels of 8045. On downside important support is placed around level of 7970 and 7920. 

Tata Motors (BSE Code: 500570) has raised USD 750 million from Asian and European investors by selling a dual tranche bond issue which got an over subscription of six times at USD 4.5 billion. The company has priced the 5.5-year benchmark senior unsecured notes of USD 500 million at 4.625%, while the coupon for the 10-year USD 250 million notes is fixed at 5.750% per annum. It had sold USD 300 million worth bonds in April at a coupon of 5.53% for five year money, indicating better operating environment for the company. The proceeds from the issue will be used to refinance external commercial borrowings, capital expenditure and for general corporate purposes. The stock may remain in focus in today’s trade.

Rashtriya Chemicals and Fertlizers (BSE Code: 524230) plans a 2-3% increase in prices next month to protect the margins, following the 33% hike in natural gas price. The government on October 18 hiked the natural gas price from USD 4.2 per million British thermal unit to USD 6.17 per mmBtu from November 1, or about 33%. On the revenue side, the company is eyeing Rs 7,500 crore in FY15, a 10% growth from FY14 due to increased production capacity. As per the management, this year production will be almost 32 LT from 30 lakh tones in the last year. The stock may remain in focus in today’s trade.

Defence projects worth Rs 80,000 crore were cleared on Saturday by the government, which also decided that six submarines would be made indigenously. The purchase of over 8,000 Israeli anti-tank guided missiles and 12 upgraded Dornier surveillance aircraft was also cleared. Therefore, Defence stocks may remain in focus in today’s trade.