Index Trends And Stocks In Action For 20th November 2013

Indian equity market closed flat with a positive bias amid range bound trading. Investors and traders looked cautious after a sharp rally of two days. Nifty closed just above 6200 mark with gains of 14 points. Metal stocks like Hindalco industries and Jindal steel gained more than 4% followed by Auto major Maruti Suzuki India with gaining about 3%. Nifty after strong up move of more than 150 points in just two days consolidated in narrow range. Going ahead we feel market may consolidate in range of 70-80 points. Key levels for nifty on downside are 6160 and next important support is 6120. On upside nifty has strong resistance around 6226 if nifty sustain above this level we may see rally up to 6255.

German auto component giant Bosch today said employees union at its plant here has called off tool down strike after arriving at an agreement with the management. Reports suggested that the employee union of Bosch Limited, Bangalore - MEA (MICO Employee's Association) has called off its illegal tool down strike after arriving at an agreement with the management, with the support of Additional Labour Commissioner. We expect a positive impact on the counter.

Shriram EPC won multiple orders worth Rs 214 crore, including a Rs 157-crore contract from BPCL. The company has received orders worth Rs 214 crore, including "an order amounting to Rs 157 crore from Bharat Petroleum Corporation Limited (BPCL) for undertaking civil, structural & underground piping works of fluid catalytic cracking units (FCCU) for the Integrated Refinery Expansion Project ( IREP) at their Kochi Refinery. We expect a positive impact on the counter on the bourses.

Domestic air traffic grew almost ten per cent last month compared to that in September with IndiGo claiming it had flown almost one-third of total passengers in October. Passengers carried by all domestic carriers between January and October this year was 507.02 lakh as against 483.95 lakh in 2012, registering a growth of 4.77 per cent. t also showed that the airlines together flew 50.08 lakh passengers in October compared to 45.55 lakh in September, reflecting a 9.9 per cent growth. We expect a positive impact on the aviation companies like Spice Jet and Jet Airways.

Reports suggested that, the state-run Power Grid Corporation of India's sale of shares, valued at about USD 1.2 billion, is likely to open on December 3, in a process that could revive the government's divestment program. Power Grid said on Monday that it had filed for a follow-on offering of 78.7 crore shares, or 17 percent stake, with the market regulators SEBI. The offering includes fresh issue of 60.1 crore shares and disinvestment of 18.5 crore shares, or 4 percent stake, by the Indian government. We expect a negative impact on the counter in near term.