Index Trends & Stocks In Action For 28th October 2013

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.

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.

Aiming to expand its international network gradually, no-frills carrier SpiceJet would add two more global destinations, Dammam and Kuala Lumpur, by March next year along with increasing frequencies on certain foreign routes. More interestingly the company is looking at offloading some of its stake in favour of a foreign partner in order to fund its expansion plans. Keep an eye on the stock, it may fly high following these developments.

Coal India Ltd has been reported to have entered into fuel supply agreements with around 156 power units. According to new norms, CIL will supply 65% of the contracted amount of fuel and 15% will be done through imports with the pass-on pricing model. The stock is likely to remain in action for today following this development.

ITCs results will probably weigh on the stock for a day or two more. The market has not taken its results very positively and this will find the stock reeling under some selling pressure even today. On the other hand, TVS Motors has come up with some remarkable numbers and this should help its stock perform well as the new week begins.