Index Trends And Stocks In Action For 22nd November 2013

Indian equity markets witnessed a fall for the second straight day in row and broke important support level of 6000 as selling intensified in the last hour of trade with nifty closing down by 123 points at 5999. Going ahead nifty has crucial support in zone of 5940-5980 there are chances that we might bounce back from this level as its strong support as its 61.8% retracement which is around 5945. RSI has touched 30 mark which hints there may be a bounce in offering. Now if we see a bounce and if nifty manages to close above 6025 levels then it will confirm that we will trade in band of 5940-6200 for some time and if nifty close below 5940 then it will clear cut signal that we might touch levels of 5800 in short term. For intraday basis 5970 is first important support level and second support is around levels of 5940. On up side nifty has resistance around 6025-6060.

Holcim's India re-structuring plan today got a go-ahead from minority shareholders as 67.95% of the institutional investors, out of the 87% that participated in the vote, favoured the merger deal. Majority of the foreign institutional investors that own 30% stake in Ambuja are said to have favoured the deal. Around 32% votes by institutional investors were caste against the deal, which came mainly from domestic institutions. Participation from retail investors was thin as only 10% of them participated in the vote and 88% out of that have thumbs-up to the deal.  We expect positive impact on the counter.

Gujarat-based Torrent Pharma is in advanced talks to buy Elder Pharma's domestic business, sources with direct knowledge shared. Torrent Pharma is said to have offered Rs 1700 crore for buying the whole of India business of Elder Pharma. New twist in the deal came after French firm, Sanofi ended the exclusive talks with Elder after conducting a long due diligence process. Elder Pharma is attractive due to a number of prescription brands, most popular being Shelcal. Reports suggested that, cash-rich Torrent Pharma is interested in the women health division of Elder Pharma. Nomura and E&Y are advising Elder Pharma in the sale process. Expect positive impact on Elder as well as Torrent Pharma.

Facing deficit of iron ore to run its Vijaynagar plant at full-capacity, JSW Steel today hinted that it may take part in the e-auctioning of iron ore already mined in Goa. Earlier, Goa iron ore was not used by domestic industry. Today, I think there is lot of capacity coming up in India. In Karnataka, we are using even low grade, even as low as 45-50." Therefore, it is possible to use low grade iron ore including Goa iron ore by the domestic industry," JSW Steel JMD and Group CFO Sheshagiri Rao stated. We expect positive impact on JSW Steel.