Index Trends And Stocks In Action For 16th September 2013

Indian Equity market had a choppy trading session on Friday as investor exercised caution ahead of an action packed week. The traded in range of 50 points between 5823-5884 and closed at 5851. On analyzing daily chart of nifty we can witness that on Friday nifty took support came near previous day’s low and we saw strong demand coming at these support levels of 5810-5830. This sideways movement without any deep cuts suggests some bullishness. Why we are saying bullishness is because there is no reversal on chart as if now. Trend will only reverse if we slip below crucial level of 5800 mark. After 2-3 days of consolidation we sense big movement happening in coming days. If we break levels of 5800 we may slide down back to 5700 and if we see a breakout above 5940 we may see levels of 6076 in short term. For intraday levels, 5880 will act as resistance and second resistance will come around 5930. On down side crucial support for nifty is placed at 5810-5770.

Neyveli Lignite has received a humongous response to its plan to acquire 2-3 overseas coal assets to ensure a supply of about 10 million tonne of coal per annum. The company has received a total 89 proposals from countries like Indonesia, Mozambique, Australia, Columbia and the USA. The acquisition of coal assets abroad will give Neyveli Lignite a maximum fuel security in future as domestic coal production remains below the targets. One may see some positive movement in the shares of Neyveli Lignite today.

Broking house CLSA has increased weightage of TCS and Lupin in its model portfolio as rupee depreciation is expected to benefit these companies which derive most of their revenues from exports. CLSA however has removed SBI from its portfolio and has also reduced the weightage if ICICI Bank in the portfolio. On this news, may see some action in these shares today.

The Board of Directors of  Man Industries (India), approved the Composite Scheme of Merger and Demerger involving its SAW Pipes Business and Real Estate and infrastructure Business. In a composite scheme of Merger and Demerger as advised by KPMG, shareholders of Man Industries will be entitled to free issue of one share of Rs. 5 in the demerged entity of real estate and infrastructure business. We expect some positive move in the shares of Man Industries.