Index Trends & Stocks In Action For 13th September 2013

After 5 days of nonstop relentless rally from 5300 to 5930, Indices took a breather yesterday. Markets closed the trading session on a lower note along with metal, financial and auto shares leading the fall. In our last write-up we had mentioned importance of 5810 level. Nifty yesterday made an intraday low near this level and bounced back sharply. On analyzing daily chart we feel nifty managed to hold on to its lows of previous day on closing basis. This suggests that the bulls have not given up yet. We expect nifty to correct only if closes below 5800 mark. Rest we can denote this as a consolidation phase or impatient selling. For intraday 5930 will act as stiff resistance and if we sustain above this level we may see momentum buying till 5970 level. On downside 5810 will remain a major support for nifty and second support around 5770. 

Tata group hospitality firm Indian Hotels Company (IHCL) plans to open 34 new hotels globally to take the tally to 156 hotels with a total of nearly 20,000 rooms by 2017. The company which currently has 122 hotels said it will mainly follow a management contract model that would be asset light for the future expansion. The stock is likely to stay in positive zone today. 

Tata Power has sought approval for a plan to divert surplus coal from one plant to another. Tata Power is seeking to divert coal from its Mandakini captive mine in Odisha to a 1,050 MW Maithon project in Jharkhand, which it operates in partnership with Damodar Valley Corporation. This would provide good leverage to the company.

Suzlon Energy has bagged orders to supply wind turbines totaling 48 MW from French energy company Valorem. The company did not disclose the value of the order, but industry experts estimate that the order would be worth around Rs 300 crore. Suzlon's German subsidiary, REpower Systems has in the past installed wind turbines for Valorem. The order would be executed in 2014. This would provide a positive impetus to the scrip.

IL&FS Engineering and Construction Company received a Letter of Award from Emaar MGF Land for construction of civil structure and related works of 150 residential villas in Gurgaon, Haryana. The project named Marbella is coming up in Sector 65 & 66 in Gurgaon. The Rs 244.46-crore contract is to be executed in 30 months. Expect a positive move in the counter today.