Index Trends And Stocks In Action For 2nd August 2013

The Indian equity markets ended flat amid a volatile trading session on Thursday with Financial Technologies hogging the limelight after the stock was hammered about 65% today after the suspension of all contracts except “e-series” by the National Spot Exchange Ltd. The 50-share Nifty ended 14 points down at 5728. In our last write up we mentioned we will witness a pullback up to levels of 5830 and what we saw was similar to our expectations. The Nifty touched 5808 and corrected itself by almost 90 points.

On analysing the daily chart, we see a double bottom formation on the Nifty. This suggests we may see a bounce again to levels of 5800-5830. For intraday, the first support for the Nifty comes in at 5710 and next important support is at around 5660. Once we break this support level of 5660-5650 on a closing basis, we may head to 5550-5500 in the short-term. On the upside, the first resistance for the Nifty will come in at 5760 and the next at 5800.

Shares of Tech Mahindra may show some gains on the news that the company has signed two multi-million dollar deals in Brazil. These deals are meant to deliver enterprise solutions (SAP and ERP) for oil & gas and banking space. The deal is signed by Complex IT, a subsidiary of Tech Mahindra. Shares of the company are trading near its 52 week high and the news may add to the already positive sentiment of the stock.

ICRA has said that the better-than-expected monsoon in most parts of the country will hit cement companies in Q2. The demand is expected to slump in Q2 despite some recovery in Q1. The ratings agency has said that the demand pick up in Q1 was temporary and it does not reflect any fundamental recovery. On the back of this news cement stocks such Ultratech Cement, ACC and Ambuja Cement may come under some pressure.

Strides Arcolab has received a tentative approval from the US health regulator for anti-AIDS combination drug. The company has received the approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for Tenofovir Disoproxil Fumarate and Emtricitabine tablets in the strengths of 300 mg and 200 mg.

Reliance Industries, ONGC Videsh and Cairn India are vying with global energy giants Shell, ConocoPhillips and ExxonMobil for 30 offshore oil and gas blocks that Myanmar has put on offer.  In all, 61 companies have been pre-qualified to bid for 11 shallow water and 19 deepwater blocks in an international tender, according to Myanmar's Energy Ministry.