Index Trends And Stocks In Action 20th September 2013

Indian Equity market ended on a strong note led by financial and FMCG shares on expectation that fund flows into emerging markets including India would continue as the US Federal Reserve’s surprisingly decided to continue its stimulus.  The 50-share nifty added 216 points at 6116. Going ahead on upside nifty will face resistance around levels of 6140 and 6180. On down side 6080 and 6035 is important support zone. Tomorrow again is an event day, we expect market to be volatile and if we close above 6180 we may see levels of 6300 in short term. On downside if we break 5800 we see a trend reversal. Till than every dip is a buying opportunity.

Macquarie in its latest report has upgraded MindTree to "outperform" from "neutral" rating and has also raised target price on the stock to Rs 1250 which is 29% up from the earlier target of Rs 970.The stock should attract fresh buying as from current price (Rs 1100) target price still has 14% upside as per Macquarie report. One may expect some gains in the stock today.

State-owned Coal India is examining a number of proposals it has received in response to the bids it invited from bankers and interested parties for acquiring assets abroad. The acquisition will help the world's largest coal producer to meet coal shortages. The company struggles to match up the rising coal demand in the country and hence acquisition is one option it is trying. The cash rich company would also have no troubles for funding the acquisition. Some gains could be there in Coal India shares today.

Reliance Industries and its partner BP plc of the UK may have finally been able to arrest the steep decline in output from their main gas field in the eastern offshore KG-D6 fields as they work to revive closed wells. Oil Ministry officials said “It was anticipated that the production from KG-D6 will drop to about 11 million standard cubic meters per day by October but that is not happening. The output is around 13.4 mmscmd and is unlikely to drop below 13 mmscmd”. Expect positive move in the stock today.

Religare Enterprises' promoters Malvinder Mohan Singh and Shivinder Mohan Singh yesterday sold 6.13 per cent stake in the diversified financial services major worth Rs 322.5 crore. Promoters of Religare, a non-banking financial services company and a major contender for new banking licences, had in June decided to sell nearly 23 per cent stake to meet the RBI eligibility norms for new banks. We expect the stock to remain under pressure for some time.