Index Trends And Stocks In Action For 5th August 2013

India equity market bleed red for eighth straight trading session on Friday on back of selling pressure witnessed in rate-sensitive shares as investors remained uncertain as to when the central bank will rollback its short-term rate hike aimed to curb rupee’s fall.  The Nifty declined 49 points to end at 5677. In our last write up we mentioned if nifty breaks level of 5710 which is important support we may head to levels of 5650 and what we saw nifty made low of 5649 and bounced back 20-25 points from this support zone. Markets have been attempting for a pullback but it is not working out. After such a big fall from 6100 all the way down to 5680 we are not even able to reclaim 70-80 points on the Nifty and that is a sign of worry for investors and traders. Now going ahead the major support for nifty stands in zone of 5630-5640, if nifty close below this level we may see a panic fall in market and gates would be open for level of 5550-5500. On the way up the 5710 will act as strong hurdle for nifty and if we cross this hurdle we may see rally upto levels of 5750. 

Coal India has disappointed the markets with its first quarter results. The company has reported a flat revenue growth at Rs 16472 crore while its net profit has declined by 16.5% to Rs 3731 crore. The company also had reported fall in the net profit in the March quarter but the current fall is widely unexpected and hence is a concern for the investor community. The stock on Friday fell by nearly 6% indicating that investors were expecting weak numbers. The stock further is likely to show poor performance on the bourses today.

Pharma Company Divis Laboratories has reported 4% growth in the net profit to Rs 175 crore. The company has reported total income of Rs 517 crore against Rs 469 reported a year earlier. The forex gain was at Rs 43 crore against Rs 30 crore a year before. The stock has shown underperformance in the last one year. The 4% growth in the net profit does not look very promising and hence the stock should show some correction in the trading session today.

Jet Airways launched a week-long sale of seven lakh low-fare domestic air tickets to attract air travellers. The one-way economy fares would be Rs 1,777, Rs 2,777 and Rs 3,777 for sectors less than 750 km, between 750-1,000 km and over 1,000 km respectively. This is the second time in this year the company has announced such offer. We feel, this kind of offers provide good Amount of liquidity to the companies. It will provide positive impact to the Jet Airways counter on the bourses.