Index Trends And Stocks In Action June 02, 2015

After a strong up-move on Friday, the Indian equity markets failed to continue with the upside momentum and shifted into choppy trade ahead of the central bank’s monetary policy. On the daily chart the index has formed a potential shooting star candlestick pattern; this suggests that bulls are losing its momentum. Now going forward the index has strong resistance in zone of 8500-8515. On the downside 8380 and 8310 is key support area for the index. The outcome of RBI mid quarter policy will set the new direction for the market for near term.

Oil and Natural Gas Corporation (ONGC) will explore four of its coal bed methane blocks on its own. This will require an investment of Rs 5,000 crore. ONGC has so far spent Rs 510 crore on the four blocks.

Kellton Tech has acquired the US-based ProSoft group for a consideration of about Rs 85 crore (USD 14 million). The company is planning to raise debt to part fund the acquisition. The US-based group comprises four firms with an aggregate workforce of 375 people. ProSoft acquisition is going to add Rs 240 crore (USD 40 million) to turnover in the next one year and Rs 20 crore (USD 3.2 million) to profits. The company expects to achieve a turnover of Rs 600 crore by the August 2016. The company acquired eight firms so far, making it a 1,000-employee entity.

RBI has allowed foreign investors to invest up to 40% of the paid up capital in Adani Ports and Special Economic Zone (APSEZ) under the Portfolio Investment Scheme (PIS).