Index Trends & Stocks In Action For 5th July 2013

The Indian equity markets snapped the two-day losing streak and ended higher on Thursday as investors and traders bought technology shares amid hopes of improvement in quarterly profits as the rupee weekend. The 50-share Nifty gained 66 points to close at 5836.

Going ahead, the market has multiple resistance levels in the zone of 5855-5870. If the bulls cross this hurdle, we may re-test levels of 5900-5920. On the other side, the Nifty has support at levels of 5810 and 5770. We might move in the range of 5770-5870 for some time to come before any breakdown or breakout happens.

Adani Group has pulled out from a USD 1.7 billion coal railway project with Indonesian state coal miner PT Bukit Asam in South Sumatra due to Indonesia's tough restrictions on licensing, said Bukit Asam's chief executive. Stock prices of Adani Enterprises are likely to be volatile today.

Three years in the aftermath of global financial crisis, India's largest private sector lender ICICI Bank has stepped up plans to expand its presence in three new geographies including Australia, Mauritius and South Africa (SA). It is likely to apply for branch licences in all these regions. Expect some upward movement in the stock prices of ICICI Bank today.

Media reports have been indicating that Bajaj Auto may launch its four wheeler passenger carrier RE60 by the end of the current financial year. This is likely to result in some upward movement in the stock prices of Bajaj Auto.

Neyveli Lignite’s trade unions have started a strike to protest against the government’s decision to divest in the company by selling a 5% stake. The indefinite strike commenced from the night shift of July 3, 2013. Some downward pressure is expected on the stock prices of Neyveli Lignite.