Index Trends & Stocks In Action for 11 November 2013
Shailendra Lotlikar / 11 Nov 2013
The markets are consistently drifting downwards and are technically forming a bearish pattern on the charts. Here is where the Nifty is headed and the critical levels for the Index along with the stocks that are likely to remain in action for today.
The market continued to drift lower for the fourth consecutive session on weak global cues and renewed fears of the rupee weakening against dollar. The Nifty closed at 6141, which for the first time was below its 21-day EMA after almost a month. On the weekly chart the Nifty has formed an expanding triangle which is a bearish pattern. Going ahead, the Nifty has a strong support around level of 6070-6080. If it holds on to these levels, we may see a minor bounce up to levels of 6150-6200 in the short term. If the Nifty breaks these levels we may drift down to 6000. On the upside the index has a strong resistance at around 6165 with the second resistance coming around 6200.
Reliance Power (RPower) has reportedly approached Power Finance Corporation (PFC) yet again for loans aggregating to Rs 5000 crore. These loans are for its two projects – Rs 2500 for the Samalkot (Andhra Pradesh) project and Rs 2584 crore for the Tato – II (Arunachal Pradesh) project. The stock will remain in focus based on these developments. A financial tie up for these two projects spells good for the company.
The Singh brothers (of Ranbaxy fame) are in trouble and that spells a bad bout for the Ranbaxy stock. Reports suggest that the Japanese pharma giant Daiichi Sankyo has accused both the brothers of having hidden and also misrepresented facts at the time of the USDW 2.4 billion buyout of a controlling stake in the company. The company is seeking compensation for the USD 500 million settlement it had to reach with authorities in the US following enquiries on the practices adopted by Ranbaxy for getting approvals. You surely know where the stock is headed this week
One stock that will be zooming up and staying in focus for the week or probably for even some more time to come is Tata Motors. The superlative results of the company powered by a good performance of the JLR will keep the stock on every investor’s radar. At a time when almost the whole of the auto sector is reeling under pressures of a lower demand, this comes as a good surprise.
Among the first few, public sector bank Dena Bank intends to raise Rs 600 crore through a qualified institutional placement (QIP). The government is expected to pump in Rs 700 crore in the bank as capital and its management is reportedly planning to raise another Rs 600 crore through the QIP to support its needs. The stock will remain in focus for today following this development.
Some more stocks that will ride news flows today include Coal India which has reported to have said that its subsidiary BCCL will be enhancing its output to 36 million tones in the next three years. Ashok Leyland is another stock which will be on the markets radar today. The company has announced a VRS for its workers. According to reports, the VRS is aimed at bringing down manpower costs and aligning fixed costs. This is a reflection of the days to come and hence a sign of why you should stay away from the stock.
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