Index Trends And Stocks In Action For 3rd October 2013

Indian equity market witnessed a nervous start to the week. The reason being congress in the U.S failed to pass the budget bill resulting in a UA Government shutdown. However in second half of trading session on Monday markets bounced back sharply from low mainly led by banking stocks. Nifty closed at 5780. In our last write up we had mentioned that we may see a minor bounce in nifty and what we witnessed was in line with our expectation. As long as Nifty stays below level of 5820 it will be in downtrend and this trend will reverse only if Nifty sustains above level of 5820. On downside nifty has strong support around level of 5730 and next strong support is around 5680.

TCPSL, the payment technology arm of Tata Communications, is expecting to double revenues this fiscal on the back of sustained income from ATM business. The company has recently got a licence to deploy white label ATMs (WLA) from where customers of any bank can withdraw money. One can expect positive move for Tata Communications on the bourses.

Sun Pharmaceutical Industries has signed a joint venture with the US-based Intrexon Corporation, a leader in synthetic biology, to develop controllable gene-based therapies for the treatment of eye diseases. The news is positive for the counter.

Godawari Power and Ispat plans to set up a 1 million tones steel plant in the state for about Rs 4,500 crore. The company, part of Raipur-based Hira Group, has acquired about 500 acres of land in Rajnandgaon district of Chhattisgarh and is doing feasibility studies for setting up the project. Expect the stock to move upwards in near term.

In an attempt to revive the struggling hydropower sector in the country, NHPC has decided to take over private hydropower projects and is ready to invest equity worth Rs 20,000 crore in the next five years. The country's largest hydropower producer with an installed capacity of 5,702 mw, NHPC is eyeing to add another 4,000 mw through equity investments. One can expect an  up-move in the counter in short to medium term.