Index Trend And Stock In Action For 21st June 2013

The Indian markets slumped over 500 points its biggest single day fall since September 2011. Comments by the US-Fed on the likelihood of trimming its monetary stimulus measures by end-2013 and weak Chinese manufacturing data led to a sell-off in global equities. The Nifty ended down by 166 points at 5655.

In our last write-up, we mentioned if we break 5760 levels on the Nifty, we can slide down severely. What we witnessed yesterday was in line with our expectations.

Going ahead, 5630 is a key support level for the Nifty. If we breach this support level, we may touch levels of 5550-5500 in the coming trading session. On the other hand, 5700-5725 will act as stiff resistance for the Nifty.

GSM operator Idea Cellular has reduced 2G data tariff by 90% across eight circles in the country, following a slash in data charges by the country's top-rung operators. The Aditya Birla group company has slashed data access charges to 2 paise per 10 KB, compared with the existing tariff of 2 paise per KB. Stock prices of Idea Cellular are expected to be volatile today.

Power generation from 280 MW Dhauliganga Hydro electric schemes of NHPC, at Chirkila in Dharchula sub-division of Pithoragarh district has come to a complete stop due to heavy rains. The generation has been halted due to the power house and the damn of the project coming under heavy silt due to rains that lashed the area for 72 hours from June 15 onwards. Stock prices are likely to see some downward pressure.

Pharma major Cipla has finally announced that it has received an approval from the South African and Botswana competition authorities for the scheme of acquisition of Cipla Medpro. In Q3FY13, company had announced that it will buy Medpro but the plans got stuck due to regulatory hurdles. The approval from the regulatory bodies may be seen positively as it will improve the off-take of Cipla's products in the African markets.

Jaypee Cement, a part of Jaiprakash Associates, has scrapped its original plans to sell its Gujarat unit on the valuation issues. As per reports, it was expected to sell this unit for an estimated amount of Rs 4000 crore to UltraTech Cement but the deal didn’t go through. The amount raise through this deal was to be used to reduce the debt burden of the company. The stock of Jaiprakash Associates may see some volatility on the back of this news.