Index Trends And Stocks In Action April 07, 2015

Indian benchmark after opening on positive note, consolidate for most part of the day. However in afternoon session bulls got full charge and nifty ended above 8650 level ahead of the RBI policy meet. Nifty has managed to cross its major hurdle on upside which was 50-day EMA placed around levels of 8620-8630. Now going forward we expect momentum to continue as nifty has maintained its higher top higher bottom sequence in last four trading sessions. Resistance on upside side for nifty is in zone of 8730-8765. On downside support for index is placed around 8610-8570. RBI policy outcome could possibly lead the further course of action.

Cairn India moved to Delhi high court against an Rs 20,495 crore tax demand slapped on it by the income tax department for allegedly failing to pay taxes on gains made by its former parent in a share transfer transaction about eight years ago. Cairn sought directions to the tax authorities not to take any enforcement steps against it for recovery of the demand.

The government will sell 5% stake in Rural Electrification Corporation (REC) on April to 8 to raise close to Rs 1,600 crore, marking the first disinvestment of the current fiscal. Taking the offer for sale (OFS) route government will sell over 4.93 crore REC shares. As much as 20 per cent of the offer size would be reserved for retail investors, who can bid for shares worth Rs 2 lakh. They would be offered shares at 5% discount to issue price.