Index Trends And Stocks In Action January 09, 2015

The Indian market again cheris the festive mood after a sharp correction on 6th January, 2015 with nifty index scaling well past 8200 up by 132 points and Sensex managed to regain its psychological level of 27,000 ended up by 365 points at 27,274. All the sectoral indices ended the session in green. In our last write up we anticipated a pullback rally based on reversal candlestick pattern formed on daily time frame, 100-day EMA support and RSI holding up 50-odd levels. Now going forward Nifty has cluster of resistance placed in zone of 8245-8380. This would act as strong supply zone for the bulls. Only if index manages to get past this resistance zone of 8245-8380 expect a fresh breakout or else index will enter to sideway or correction phase. On downside 8190 would act as a major support, below this level expect correction up to levels of 8135-8065.

State Bank of Travancore (BSE Code: 532191) has sought capital markets regulator Securities and Exchange Board of India’s (Sebi’s) approval to raise up to Rs 485 crore through rights issue to shore up its capital base.

Power PSU SJVN (BSE Code: 533206) has signed a joint venture agreement with six state power generating companies from West Bengal, Bihar, Uttar Pradesh, Punjab, Karnataka and Tamil Nadu for formation of a JV Company for mining coal from Deocha Pachami-Dewanganj Horisingha coal block located in Birbhum district of West Bengal.

IT Company Infosys (BSE Code: 500209) will declare its third quarter number of the current fiscal. Deviating from the usual trend, the company will declare its number during the trading hours around noon, instead of pre-market announcements. Infy’s revenue growth guidance will set stock and market direction.

Network18 Media & Investments' (BSE Code: 532798) subsidiary, Capital18 Fincap, has entered into an agreement to sell its majority stake in Stargaze Entertainment to Carnival Films for an undisclosed sum. The move will result in a “profitable exit”, Network 18 Media, a Reliance Industries-owned company, said in an exchange release. Stargaze Entertainment operates multiplexes under the name Glitz Cinemas and is majority owned by Network18 Media through its venture capital subsidiary Capital18 Fincap.