Index Trends and Stocks In Action for 1st January 2013

Market on Monday started on a negative note and traded in tight range of 10-15 points. The Nifty saw some movement in the last hour of trade, but the momentum didn’t last much and it ended with a mild damage of three points at 5903. Over the past seven trading sessions, the market has been consolidating in a range of 5848 to 5939. Going ahead, support for the Nifty stands at 5888 and 5850. On the upside resistance for the Nifty stands at 5939-5965.As long as the nifty holds out 5820 on a closing basis the bulls will be the favorites.

Indiabulls Securities has been penalised by the SEBI for Rs 4 lakhs. Sebi has basically slapped a fine on Indiabulls Securities for not taking adequate steps to redress complaints within 30 days of recepit, executing trades in clients’ accounts without their instructions and squaring off clients’ positions despite sufficient ledger balances. SEBI had conducted an inspection of the books of accounts, documents and various other records maintained and furnished by Indiabulls Securities. This spells a downside for the Indiabulls stock today.

Ramky Infrastructure has secured finance worth Rs 1225 crore for its Agra-Etawah road project in Uttar Pradesh. However, the company did not disclose the debt-equity ratio on which it will operate this project. Ramky Infra is likely to remain in the bullish trend for the day.

Tulip Telecom is set to undergo for corporate debt restructuring (CDR). The new debt structure will have longer maturity periods including a moratorium on principal and interest payments. At the end of September 2012, Tulip Telecom had a total debt of Rs 2400 crore. More than 90% of shares are held by the promoters. This will have a positive impact on the stock of Tulip Telecom for the day.

Ore producer MOIL has evinced interest in picking up a stake in Maravilloso mines in Peru, owned by Melrose Mines and Minerals. It has four manganese ore concessions with a reserve of 2.95 million tonnes. Melrose is a diversified mining firm which operates and develops iron ore and manganese mines with reserves of over 400 million tonnes and 30 million tonnes respectively. The development points towards a good trading day for MOIL.