Index Trends And Stocks In Action For 14th November 2013

Indian equity markets continued its slide downhill yesterday as well. Market in afternoon session turned volatile with swings on both the side. But as the day progressed and SBI results were out and the indices surged to intraday high. As we have seen lately bulls fail to sustain on higher this was same old story we slipped almost 50-60 points from day’s high.  Nifty now has 7 days of consecutive decline and this indicates the nature of correction. In the past Nifty has never witnessed such a deep correction; market has lost more than 5% post Diwali highs. Nifty has also broken previous swing lows without any sustainable pull back.  Going ahead market has multiple supports in range of 5940-5970, if nifty closes below this range of 5940-5970 than bears will get grip and we may slide down deep. However chances are we may spend some time in range of 5940-6050 for some time. For intraday nifty has resistance around level of 6015-6045. On down side strong support is around 5940. 

TTK Prestige is eyeing its first overseas acquisition in Europe as a part of its strategy to take the brand international. The company was looking to acquire only a "cookware" brand in Europe and currently the cookware industry there was valued at Euro 2 billion. The management is likely to look at deal of around Rs 400 crore. We feel the inorganic way of growth to be good for the company and hence expect a positive move for the counter on the bourses.

KEC International which one of the leading infrastructure companies announced that it has received an order to the tune of Rs 568 Crore in its transmission and cable business in India, Saudi Arabia and Bangladesh. The scrip is likely to witness a northward movement on the bourses.

Hero Moto Corp which was till date only catering to the Indian domestic markets is planning to roll out its two wheelers in the United States and Canada. We feel the move will be positive for the company as it will provide access to the export markets.

Tamil Nadu based miner Neyveli Lignite Corporation is planning to invest Rs 26728 crore for development of power projects and Rs 2510 crore for coal projects. The company has strong balance sheet with good amount of cash to its kitty. We expect a positive move for the state owned miner on the bourses.