Index Trends & Stocks In Action For 25th September 2013

Indian Equity market snapped two-day losing streak and ended flat with a positive bias on Tuesday as gains in auto shares helped offset losses in IT majors. The 50-share Nifty ended up 3 points at 5892 after touching a high of 5938. Yesterday we talked about lower top lower bottom pattern nifty is continuing that pattern and bulls tried too hard to break important resistance level of 5970 but the rally fizzled out and nifty ended with minor gains. Going ahead 5940 and 5975 will be important resistance for nifty, trend reversal only if nifty sustains above 5975. On down side 5840 is important support level and next support level is around 5800.

Ashoka Buildcon has said that it has received "Letter of Awards" for four turnkey contracts for electrification work from Maharashtra State Electricity Company Ltd (MSEDCL). The order is worth Rs 494 crore. The stock is expected to show marginal gains today on the back of this order inflow.

Cement stocks may remain in focus today on the comments of Holcim, the world's largest cement maker. The company is cautiously optimistic about the outlook for cement industry in India. It is saying that the demand could pick up due to the government spending on infrastructure ahead of the election. ACC and Ambuja should witness some fresh buying in today’s market.

Vijay Mallya, promoter of the most troubled company in India, Kingfisher Airlines has said that the company is in talks with an undisclosed investor for a potential stake sale. He expects some positive news on this front in the next 90 days. The stock which has been hammered on the bourses may show some gains on the back of this news.

Tata Group chairman, Cyrus Mistry has raised his stake in the four group companies i.e. Tata Power, Indian Hotels, Tata Global Beverages and Tata Motors. When promoters raise their stake in the companies it is usually taken as a positive sign by the market as it boosts the confidence of the investors. One may see some positive reaction in the Tata Group stocks as market would speculate promoters would also raise stake in the other Tata Group companies.

The world's largest property investor Blackstone, has agreed to buy a 3.6 million square feet IT SEZ in Gurgaon, for Rs 2600 crore. This property is partly owned by Unitech. This would be one of the largest private equity deals in the country’s real estate market. One may see some position trades in Unitech today.

Liquor maker, Tiilaknagar Industries may see some decline over the news that the company has come under the Income-Tax department’s scanner after its survey raised doubts over the mega project status claimed by the company for its Shrirampur distillery.