Index Trends & Stocks In Action For 3rd July 2013

The Indian equity markets snapped its three-day winning streak, amid a volatile trading session, weighed down by Realty and Oil & Gas stocks. The 50-share Nifty closed 41 points lower at 5858.

On the daily chart, the Nifty has formed a bearish harami pattern, which is a reversal pattern. This suggests that the markets can change direction.

Going ahead, the level of 5910 will act as a major hurdle for the bulls. If we sustain above this level, we may touch levels of 5930-5950. On the other hand, 5845 will act as an immediate support for the market. The second support, which is a crucial one, will come at 5820.

Pharma major, Lupin may extend gains on the back of the news that the company is actively looking for an acquisition in the Latin American market. The board of directors have also approved a proposal to increase the FII stake limit in the company from to 49% from the current 33%. The stock is likely to keep up the positive momentum.

The Telecom Commission yesterday approved 100% FDI in the telecom segment. Earlier 74% FDI in the   sector was allowed. The first 49% FDI can be done through automatic route but for the increased FDI a FIPB approval is required. This will benefit the telecom industry as it will help the sector to raise funds going ahead. Companies like Reliance Communication and Idea Cellular will be benefited from this.

Tata Power has tied up funds for the 95 MW Tsitsikamma wind energy project, which is estimated to cost about Rs 1750 crore, in South Africa. The project is being implemented by Cennergi, an equal joint venture between Tata Power and South Africa’s Exxaro Resources.

L&T Hydrocarbon has won an order worth more than Rs 1000 crore for building a paraxylene plant for a refinery. It has signed a MoU for the execution of the project for which it would mobilise about 25000 workers and 600 staff members. The work would be executed over a 30-month period. Stock prices are likely to see some upward movement today.

Adani Ports and SEZ, part of the Adani Group, and Switzerland-based firm MSC Mediterranean Shipping Company announced the formation of a joint venture that would operate a new container terminal in the South Basin at Mundra port in Kutch district of Gujarat. The new container terminal, the third such facility at Mundra, will have a capacity of 1.5 million twenty feet equivalent units (TEUs). The joint venture will be known as Adani International Container Terminal Pvt Ltd (AICTPL). Adani Ports and SEZ is likely to see an upward bias today.