Index Trends & Stocks In Action For 5th September 2013

The Nifty held on to the level of 5300 and traded positively throughout the day yesterday. Buying was witnessed across all sectors. The Nifty closed 106 points higher at 5448. In our last write up we drew out the importance of the 5300 mark for the Nifty. We expected a bounce back in the Nifty if it held on to these levels.

On analysing the daily charts, we see that the Nifty has formed a bullish piercing candlestick pattern. We expect the market to continue this pull back rally up to levels of 5470. If we sustain above this level, the Nifty may even touch a level of 5510. On the downside, important support stands at 5400 and 5350.

HCL technologies has bagged a contract from a North American energy services firm Direct Energy to implement and manage residential billing and customer care operations. HCL Technologies, under this agreement, will implement and manage residential billing and customer care operations of Direct Energy. HCL will also provide infrastructure hosting, application management and business process services. IT stocks are showing gains in the last few days and this news may be seen positively by the markets.

Shares of Gujarat Gas, Gail and HPCL may show some gains on the back of the news that Gujarat based GSPC Gas has raised CNG prices by Rs 3 per KG and of industrial gas by Rs 1.9 per SCM. GSPC Gas has raised prices in order to pass on the price due to the sliding rupee. The move may well be followed by other companies in the sector and hence shares of the above mentioned companies may show some gains.

Future Ventures is in talks to sell 65% of its stake in entertainment and education company ACK Media for about USD 25- USD 29 million. ACK Media owns the country's leading children's magazine brands Amar Chitra Katha, Tinkle and Karadi Tales.

Tata Consultancy Services has been selected to deploy a new rating and billing system for CTM, a telecom service provider in Macau. The solution is expected to be deployed within three years. It will allow CTM’s customers to receive faster response to inquiries and enable them to better manage their services and bills.

CESC’s first thermal power unit of 300 MW outside West Bengal has been successfully synchronised at Chandrapur, Maharashtra. Work is on in full swing for the second unit. The project 2x300MW is being executed by Dhariwal Infrastructure (DIL), a wholly owned subsidiary of CESC Infrastructure. CESC said for power evacuation from Chandrapur, work on the 400 KVA transmission line had already been completed.