Index Trends & Stocks In Action For 8 November 2013

The markets opened relatively flat yesterday and at one point in the morning session, the Nifty was up 60 points putting the market breath in favor of bulls. However, in the last one hour profit booking led to it ending near the day’s low.  In our last analysis we had mentioned that if the market has to witness any bounce it will be now and what we witnessed yesterday was in line with those expectations where the market saw a good bounce of 60-70 points. It looks like facing resistance at higher levels of 6270-6310, and only some positive developments or a serious fund flow from either FII’s or DII’s can help the Nifty to cross this level. In the afternoon session the Nifty was trading near 6289 levels and shed all its gains, which suggests that momentum is diminishing. So, for the short term the market looks to be in a profit booking mode. Intraday the Nifty will face resistance around 6220-6270 levels. On the downside a strong support is placed around 6170-6130.

Pharma companies may be doing fundamentally well. But their non-operational problems seem to be on the rise. According to a report, Dinesh Thakur a whistleblower from Ranbaxy Laboratories has revealed that the company used "fraudulent" data to get USFDA nod to sell its generic drugs. He has also accused the company of faking test results. The news is likely to hurt the stock in today’s trades and pull it further down.

Commercial Vehicles major, Ashok Leyland is reportedly thinking of hiking prices of its products in the month of November. This decision comes amid a gloom that surrounds the auto sector and could be a bid to improve topline to counter the sluggish sales. The stock could trade volatile with an upward bias following this report.

Engineering & Construction major Larsen & Toubro in a filling with the BSE has reported that it has bagged orders worth Rs 2309 crore across various business segments. These include an order for the construction of a greenfield airport’s air side works in Kerala, one from the Oman Electricity Transmission Company for engineering, procurement and construction of grid stations, to be completed in 20 months and a project from the ‘Department of Atomic Energy for design, engineering and supply of thermonuclear reactor components for a cooling water system, a chilled water system and a heat rejection system among others. The stock will certainly ride on the positive development to close the week higher.

IL&FS Transportation Networks has reportedly tied up loans worth Rs 3000 crore for financing road projects in Jharkhand, West Bengal and Maharashtra. These loan agreements have been signed with IndusInd Bank, IL&FS Financial Services and Yes Bank. The stock will remain in action following this development as it provides some visibility to the future of the company.