The markets have been steadily losing over the past few days. But this should not be a reason to worry if you look at what the charts are technically suggesting. Here is what the Nifty could do as we head into a new trading week along with some stocks that will remain in action for today.
The market witnessed a range bound trade on Friday and ended lower for the fourth straight day in row. Profit booking was witnessed in large caps like L&T, ITC and M&M. However, Banking stocks continued to provide some respite to the market. The daily chart of the Nifty shows no clear signal of a trend reversal. The momentum is diminishing, but this is not a concern as this is happening after a quick big move, where we saw the Nifty moving up by as much as 3% in just two days. After such a big move four to five days of a range bound trade is likely and this is healthy for the market. So as long as the Nifty holds on to 6100-6050 levels on a closing basis, the trend will not change. The index has a strong support around levels of 6115-6100 and on the upside 6180 and 6220 will act as a stiff resistance.
State-run transmission utility Power Grid Corporation expects to launch its follow on public offer (FPO) anytime next month. The government could get about Rs 1900 crore from the process, while the company will garner around Rs 6000 crore from the sale of fresh equities. The stock is likely to remain in action as we head into a new trading week.
Unichem Laboratories has received an approval from the USFDA for its generic Amlodipine Besylate tablets used for treating hypertension and coronary artery disease. The product in the strengths of 2.5 mg, 5 mg and 10 mg are equivalent to Pfizer Inc's Norvasc tablets in the same strengths, it added. The stock will come up the radars of traders and investors following this development.
Federal Bank has received an FIPB approval for hiking foreign shareholding limit in the bank to 74%. Since the proposal involved foreign investments of about Rs 1400 crore, it would also require clearance of the Cabinet Committee of Economic Affairs (CCEA). A good development, especially to ride the optimism that surrounds banking stocks in the markets.
HDFC Bank has raised USD 500 million from an overseas bond sale programme as part of its USD 2 billion medium-term bonds sale plan. The funds were raised by offering a coupon -- a periodic interest payment -- of 3%. The three-year unsecured senior bonds (RegS) received an over-subscription of more than four times at USD 2 billion from over 150 investors. The stock has anyways been in demand and will continue to be so in this week as well.
Petronet LNG, the nation's largest liquefied natural gas importer, will hire a fourth LNG ship from a consortium of state-owned Shipping Corp of India (SCI) and Japanese lines. SCI and Japanese firms Mitsui OSK Lines, NYK Line and K Line have won a global tender to lease one LNG tanker to Petronet for hauling the fuel from Gorgon in Australia to Kochi in Kerala where Petronet has built a 5 million tonne per annum LNG import and re-gassification terminal. Keep an eye on the stock, it may offer some medium term upside following a news driven demand for it.