Index Trends And Stocks In Action For 13th November 2013

Indian equity markets continued to close on a weak note. Benchmark indices were down as even the broader market participated in this fall. Nifty closed at 6018. In today’s session nifty attempted to move above 6100 but failed to make it on a sustainable basis. This suggest that market is facing supply on every rise and traders are cutting out there long position and making fresh short position. Looking at the RSI it is dropping down but it is still to reach an oversold zone. This suggests, if Nifty breaks level of 6000-5970 this fall can accelerate.   Going ahead nifty has strong support around level of 5970 and next support is around 5910. On upside nifty has resistance around 6070-6100.

Paving the way for closure of long pending Jet Etihad Deal, fair trade regulator competition commission of India (CCI) approved the proposed acquisition of 24 % stake in Indian carrier Jet Airways by Etihad. In a long pending deal Etihad is acquiring the stake for Rs 2058 Crore in a deal that was announced in April 2013. This was the first FDI deal in Indian aviation space. As this was the last leg of long pending deal, we expect the scrip to witness an up-move in Jet Airways counter on the bourses.

Punjab National Bank has stated that it expects credit growth to reach 12-15 per cent by this fiscal-end from 2.5 per cent last year on the back of robust demand from retail, agriculture and MSME sectors. After a dull period the bank is expected to witness a good momentum in the credit growth. We expect a positive impact on the counter in medium term.

The Tata Power in a statement stated that it cannot continue to incur an annual loss of about Rs 1900 crore on its Mundra project in Gujarat due to non revision of tariffs. We have been constantly stating that if the revision in tariff happens the stock is likely to witness an up-move. With some talks expected on the tariff hike front, the stock is likely to witness an up-move in medium term.

Reports suggested that, Vodafone will look at listing its Indian unit once it resolves USD 2 billion tax dispute with country’s government. We    feel the listing of Vodafone would rerate the other telecom service providers like Idea Cellular and Bharti Airtel on the valuation front providing some impetus on the bourses.