Index Trends & Stocks In Action For 23rd September 2013

Indian equity markets take a hard blow on Friday following a surprise decision by the Reserve Bank of India (RBI) to raise repo rate, at which banks borrow from the central bank. Nifty ended down by 1.69% at 6012. In our last write up we mentioned nifty might face resistance around levels of 6140 and nifty made a high of 6143 and corrected more than 150 points. Going ahead we expect market to trade in range of 5800-6090 in coming week.  For intraday 5930 is important support level for nifty on downside and on upside nifty will face resistance around 6050 and 6070.

Coal India has said that the trade unions at Coal India have put off a three-day workers strike, after a meeting with company officials. Coal India's five trade unions had earlier served a strike notice, mainly to protest against the government's plan to sell off five percent of the company's equity. The stock should show some positive bias on this news.

Shares of troubled pharma major, Ranbaxy are expected to dive downward further on the news that the regulatory authorities from Australia and Europe have sought information from the Food and Drug Administration (FDA) about the lapses at the Mohali facility which in the last week led to a US FDA ban on imports of products made at this facility.

HDFC Bank management has stated that it is hopeful that the bank is likely to maintain its margins in the range of 4.2-4.5 percent going ahead. However the management is cautious of minor impact on margin, which would be made up in the rest of the year. We feel the stock has witnessed decline on the bourses and hence is looking good for long term.

The board of Hindalco Industries have allotted 15 crore shares on account of conversion of warrants that were allotted on the preferential basis on 22nd March 2012. The price is Rs 144.35 per share as against the current market price of Rs 114. The scrip is expected to witness a positive move on the bourses in medium term.