Index Trends And Stocks In Action For 14th October 2013

Indian Equity market scaled to three week high on back of strong global cues and good results delivered by Infosys. Breadth remained in favor of bulls. While the Midcap Index underperformed the benchmark indices, banking stocks were in lime light and closed on higher side. Nifty now has closed very close to July/September swing highs from where we had significant reversals. On daily chart nifty has formed hanging man which is a reversal pattern and RSI is showing negative divergence. If we sum up all this point this hints towards some correction in market. However we need confirmation on candlestick and on closing basis. As long as nifty is holding 5970 on closing every dip would be considered as buying opportunity. For intraday Nifty has stiff resistance is around 6120-6150. On downside nifty has strong resistance around levels of 6040-6000.

In a bid to avoid unnecessary pile up of inventory, German auto-parts maker Bosch Ltd is suspending operations of its two manufacturing facilities for periods ranging from two days to six days this month. With a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory, it is proposed to suspend the manufacturing operations," Bosch said in a BSE filing. We expect minor negative impact on the counter.

Reports suggested that, J&K Bank is targeting to grow its post-tax profit by 25 per cent to Rs 1,300 crore this fiscal despite the economic gloom and certain hit on banks' bottom-lines due to mid-July liquidity tightening measures by the Reserve Bank. We have been constantly bullish on the counter and the scrip is likely to stay in positive zone in near term.

Reports suggested that, the Department of Telecom has awarded unified licence to Idea Cellular for seven circles. The company has been awarded licences for Assam, West Bengal, Kolkata, North East, Tamil Nadu, Jammu and Kashmir and Odisha. The company had applied for licences in seven circles after it emerged as the second biggest winner in the November 2012 spectrum auction. We expect the counter maintain its upward momentum in near term.

Home and interior decor firm, Hindware Home Retail Ltd, a subsidiary of HSILthat makes sanitary under 'Hindware' brand, will invest up to Rs 300 crore by next financial year to increase its footprints across the country. The management told PTI that "We will invest up to Rs 300 by next financial year to increase our footprint. We will open company owned and operated mega stores and franchised stores as well”. We expect a positive impact on the stock in near term.

Results to be announced today are Bajaj Corp, CMC, IndusInd Bank and Reliance Industries.