Index Trends & Stocks In Action For 19th September 2013

Indian Equity market saw rally in last hour of trading session pushing Sensex above psychological mark of 20000 and nifty above 5900 on intraday basis. The rally was largely by banks, FMGC and Oil & gas stocks. Nifty 50-share index closed at 5899 with gains of 49 points. Going ahead on upside nifty will face resistance around levels of 5940 and 5980. On down side 5850 and 5800 is important support zone. If we break levels of 5800 on closing basis we may see a trend reversal and nifty will witness bear attack. Traders and investors should take cues from FOMC meeting.

Brokerage houses have raised their targets on Dr. Reddy's laboratories after it has received US FDA approval for a drug that is indicated in the treatment of bone marrow. The company is also focusing on making entry in the niche complex drugs which have high margins and have a very limited competition. The move is expected to be seen positively by the markets.

India Cements has said that it is looking at possibilities to export cement to benefit from the rupee depreciation. N Srinivasan, vice chairman and managing director of India Cements in the latest AGM said that company used to export cement earlier but the export opportunities came down as the Indian firms became less competent with other countries due to their low pricing. The latest comments may be seem positively by the markets.

Tata Motors UK Subsidiary, Jaguar Land Rover has said that it is looking to set up a new manufacturing plant in Brazil. If company goes ahead with this proposal, then this plant will become the third JLR plant outside the UK. The sources also indicate that the company is further in talks with Government of Saudi Arabia to set up a plant there too. The aggressive move may add some value in the stock today.

Auto and Realty stocks may show some gains over the news that RBI is considering ways which will result in cheaper auto and realty loans.  Under the scheme banks would be allowed to borrow from RBI at a rate 1-2% lower than the lending rate. The basic aim to reduce the interest rates of the Auto and real estate loans. One may see some action in the auto and real estate stocks today.