Index Trends And Stocks In Action For 21st November 2013

Indian equity market snapped its three day’s winning streak; market saw some heavy selling in last hour of trade after trading in narrow range for whole noon session. Nifty closed around 6122 losing more than 1%. On daily chart nifty has formed a big bearish candlestick which hints that market may trade volatile in tomorrow trading session. Going ahead on downside 6090 is important support level for nifty and if nifty breaks this level than next support is placed around levels of 6035-6040. On upside nifty will face resistance around levels of 6160 and if nifty sustains above this level we may see a rally up to 6205.

Shipping Corporation of India announced a freight rate hike of up to USD 500 for 40-feet containers on the India-Europe sector. According to the company this step is taken as they are facing pressures on account of fuel price hike, the rupee movement and reduction in traffic. The hikes, for traffic from India to Europe, the Mediterranean, the Black Sea and the Red Sea trade route, are applicable from December 1. Based on this news the stock may receive some positive move in today's trade.

The government has slapped an additional penalty of USD 792 million on Reliance Industries for producing less than targeted natural gas from its eastern offshore KG-D6 block. A notice disallowing USD 792 million out of the cost already incurred on the Bay of Bengal fields was sent to RIL on November 14.With this, a total of USD 1.797 billion penalty in form of cost being disallowed has been levied on RIL for producing less than targeted output during the past three years. The stock may trade with some negative bias in today's trade.

In just 24 hours of sugar mills official declaration of shut down of sugar industry in UP, the state government announced the state advised price for cane. Succumbing to the demands of the sugar industry to not increase the cane price, it is kept same as last year Rs 280 per kg. "For the earlier variety, it is kept at Rs 290 per quintal, for general Rs 280 per quintal and for rejected variety it is Rs 275 per quintal. The rates are exactly same as last year. Providing additional relief, the state government has also given transport rebate of Rs 8.75 per quintal of cane. It has also waived off Rs 2 per quintal of cane purchase tax for the sugar mills. Sugar industry officials however are still not appeased and wish to continue with their shut down as the industry asked for Rs 225 per quintal. We expect negative impact on Sugar stocks like Bajaj Hindustan, Balrampur Chini and Triveni Sugar.