Index Trends And Stocks In Action For 11th October 2013

Indian equity markets closed flat amid choppy trading session. There were instances were the nifty attempted a small correction. However on every dip buying was witnessed. Correction or consolidation occurred throughout the day as a result of underperformance of Bank Nifty. Going ahead the traders would take cues from IT major Infosys results today. For Intraday Nifty has stiff resistance around 6050-6100. On down side the Nifty has strong resistance around levels of 5970 –5900. If we break level of 5900 on downside, Nifty may touch levels of 5800 in short term.

Hero MotoCorp has unveiled 15 new products. This product would enter in the market within six months. However, company is looking to cash as much as possible with its new products in the coming festive season (October to December) .The company has also announced to entry into new markets like Turkey and Egypt in coming few months. We expect the scrip to witness an up move in near term.

Ashok Leyland will launch three new products in the upcoming festive season. Company would introduce 2 Light Commercial Vehicle (LCV) and a Bus for its consumers. Company is hoping to improve its sales volume with its new vehicle in near future. Hence, we expect the scrip to move up in medium term.

Telecom Ministry of India has approved Reliance Jio Infocomm with new telecom licence and has also issued letter of intent to the company for taking the licence. The company will have to submit one time entry fee of Rs 1673 crore, a performance bank guarantee of Rs 220 crore and financial bank guarantee of Rs 44 crore to uphold the licence. Stock of Reliance Communication would be benefited.

Luxury car maker JLR, the only supportive part for Tata Motors amid slowdown in its leading segment - commercial vehicle , reported record retail sales of 43,181 units during the month gone by, a growth of 17 percent year-on-year and 55 percent sequentially. Jaguar and Land Rover brands received strong response during the period with the Chinese sales growing 46 percent and Asia Pacific jumping 29 percent, UK rising 11 percent, Europe up 8 percent, North America up 6 percent, and other overseas markets up 15 percent, the company said in its filing. Jaguar sales grew by 35 percent year-on-year to 8,462 vehicles, reflecting F-TYPE introduction, continued demand for all XF derivatives and a solid performance from the XJ (up 51 percent).We expect the scrip of Tata Motors to witness an upmove today.