Index Trends And Stocks In Action 8th January, 2013

Indian equity markets started off on a positive note on Monday. However drifted down into negative territory in afternoon session and declined sharply in last hour of trade. Nifty managed to close at 5988 down by 27 points. Nifty formed Bearish Engulfing candlestick pattern which is negative for Nifty. Going ahead Nifty has crucial support around level of 5960-5930 and resistance for nifty comes at 6022-6050.

Elecon Engineering Gujarat based company has bagged orders worth Rs 18.36 crore. The company has bagged Rs 12.21 crore order from NMDC for the purpose of supplying, erection and commissioning of lump ore reclaimer including initial spares to client's for Bacheli complex project and second from Madras Cement for the supply of material handling equipment and other spares for grinding unit project. One may expect positive movement in the stocks of Elecon Engineering for the day.

MTNL (Mahangar Telephone Nigam) state owned telecom service provider has delisted its American Depositary Shares (ADS) from New York Stock Exchange (NYSE) and listed them on OTCQX International market. We expect the stock of MTNL to remain volatile today.

GMR infrastructure has given up the India's largest highway project.  The company last year had won this project which was expected to beef up GMR's revenues substantially.  The highway business currently accounts for around 10% of the GMR's Rs 8000 crore revenues. GMR walked out of the project after NHAI failed to get the required environmental clearances. Expect GMR to trade in negative zone.

State Bank of India has announced that the bank would raise Rs 3000 crore through preference shares in the next 3 months. This is the part of Rs 12000 crore infusion plan which was approved by the Finance Ministry recently.  We expect SBI to remain volatile for the day.