Index Trends And Stocks In Action For 11th July 2013

The Indian equity markets ended lower on Wednesday amid weak European cues and as traders and investors turned cautious ahead of the release of Fed minutes and Infosys first quarter earnings on Friday. The 50-share Nifty ended down by 42 at 5817.

In our last write-up, we mentioned that bulls are getting tired at higher levels and as soon as the Nifty comes around 5880-5860, resistance appears strongly. What we witnessed was in line with our expectations. The markets opened positive and made a high of around 5879 and shed 70 points from the day’s high.

On analysing the daily chart, we get to see that the Nifty has topped out in the zone of 5900-5910 for the short term. Going ahead, 5800 is an important level for the Nifty on the downside. The second important level is 5760. On the upside, the Nifty is likely to face resistance at 5835-5855. We expect the markets to break this narrow trading range of 5770-5900 on Friday as IT Major Infosys will decide the trend of market.

Non-banking finance company Shriram Transport Finance Company (STFC) is entering the debt market on July 16, 2013 with a public issue of secured non convertible debentures (NCDs) of face value of Rs 1,000 each. The company aims to raise up to Rs 375 crore with an option to retain over-subscription up to Rs 375 crore for issuance of additional NCDs aggregating to a total of up to Rs 750 crore.

Days after the Cabinet approved doubling of natural gas price from April next year, the Finance Ministry has written to the Oil Ministry suggesting setting of a ceiling or an upper limit for the rates. Also, it wants Reliance Industries, which will be a big beneficiary of rates rising to $8.40 per million British thermal unit, be asked to sell the quantity it has failed to deliver as per its own targets during past three years at current price of $4.2.

Punj Lloyd has signed a pact with Rwanda to construct and operate a 100 MW power plant from peat - a coal-like fossil fuel - with an estimated cost of over Rs 1000 crore. As per the agreement signed last week, Punj Lloyd will construct, finance, maintain and operate a 100 MW power plant in North Akanyaru of Eastern Province of Rwanda and the construction period is 42 months after securing finances for the project.

Widening its portfolio in the executive 125cc segment, two and three-wheeler maker Bajaj Auto launched Discover 125T under its successful 'Discover' brand. The company, in the 125cc category retails Discover T and the 125ST.