Index Trends And Stocks In Action For 10th July 2013

The Indian equity markets ended higher on Tuesday on the back of strong global cues. Market sentiment improved as the Reserve Bank of India stepped in to prevent a further fall in the rupee. The Nifty gained 47 points to close at 5859. After a gap-up opening, it made yet another attempt to cross levels of 5900-5910. But the bulls seem tired and are facing resistance at higher levels. The Nifty has entered into a trading range where the upper limit is 5910 and the lower limit is 5750. Once the Nifty moves beyond these boundaries, we will see a fresh breakout or breakdown. For intraday levels, 5830-5820 is an important support and the next support level comes in at 5770. On the upside, resistance will come in at 5870-5910.

Morgan Stanley has put an ‘overweight’ rating on Havells India. The brokerage house has seen strength in the dealer franchise model of the company. Besides, brand strength and demand growth are also positives that have led to the broking house going overweight on the stock. The stock has already started going up and the momentum is likely to continue today as well.

The labour strike that hit Bajaj Auto has not been getting any respite as the Pune labour commissioner has issued a show cause notice to the company for employing illegal workers at the Chakan plant where contracted workers have gone on strike from June 25, 2013. The company has been given three days to respond to the notice. The stock is likely to remain volatile due to this new development.

Jindal Steel & Power is in talks with global steel trader Stemcor for buying their pellet unit in Odisha. Stemcor, which owns 80% stake in the unit along with an Indian promoter which owns 20% stake, is expecting a valuation of USD 300 million. Stock prices of Jindal Steel & Power are likely to see some volatility today.

As per media reports, Clariant Chemicals has put its Thane land up for sale and expects to raise Rs.1500-1600 crores from the 80 acre land parcel. It also says that cash-rich companies like Oberoi Realty, Piramal Realty and Lodha Developers are some of the serious contenders in the fray. Stock prices of Clariant Chemicals are likely to see some upward movement today.

Indian Oil Corp (IOC) is in talks to buy Malayasian oil firm Petronas' 10% stake in Canadian shale gas assets, which are touted to be worth at least USD 1.5 billion. Petronas has approached IOC with an offer to sell a 10% stake in shale gas assets in North Eastern British Columbia. Stock prices of Indian Oil Corp are expected to be volatile today.