Index Trends & Stocks In Action For 29th October 2013

Profit booking in the second half pulled down the markets yesterday. FMCG, Realty and Banking stocks dragged the market below important support levels of 6120-6130. For the past 3-4 days the market has been trading in a very narrow range of 60-90 points. They are now trading near the lower end of the range and Banking stocks, which were providing support to it, also saw the unwinding of long positions ahead of the RBI Monetary policy. Going ahead, the Nifty has a strong support at the 6070 level at the first step while the next support comes in around levels of 6000. Once we close below this level, the trend will be in favor of the bears. On the upside the Nifty will face resistance around 6132 and 6175.

Augmenting its renewable energy portfolio, Tata Power is developing wind power projects which will total to a generation capacity of over 160 MW. The private power producer already has an installed wind energy generation capacity of 398 MW with projects across Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka. These new developments which spell good for the company going forward are likely to keep the stock in action today.

Oil Minister M Veerappa Moily has approved taking away five gas discoveries from Reliance Industries in the KG-D6 block over the company's failure to meet timelines. However, he has allowed the company to retain three other finds. The five discoveries - D4, D7, D8, D16 and D23 - hold 0.805 trillion cubic feet of reserves, or about one-fourth of the restated reserves in the currently producing Dhirubhai-1 and 3 (D1&D3) fields in the KG-D6 block, and are worth USD 10 billion. No points for guessing where the Reliance stock is headed today.

Sun Pharma said it has addressed the US health regulator's concerns about manufacturing lapses at its US-based Caraco Pharmaceutical Laboratories. The USFDA had conducted inspections in January and May this year and had noticed the lapses. When asked about the nature of lapses and the corrective measures the company has taken, a company spokesperson said they were "minor observations". Time for the stock to correct as well.

The government is considering a buyback in state-controlled mineral producer NMDC. A final decision in this regard will be made by end of next week. The stock will surely react to this development and make some moves in the coming days.