Index Trends & Stocks In Action For 25 November 2013

The market opened gap up on Friday on the back of strong global cues. For the morning session, the Nifty traded in the positive region up by about 1%. However in the afternoon session, participants booked profit and used this rise to build short position. In the last half an hour the market recovered smartly from its day’s low. On the daily charts the Nifty has formed a double bottom around levels of 5970. Going ahead, this zone of 5940-5970 will act as a strong support for the Nifty. If it breaks and closes below this level, the bears will get a strong grip and we may slide down up to levels of 5850 in the short term. On the upside the Nifty has a strong resistance at around 6060 and the next resistance sets in around 6110.

Reports suggest that Royal Dutch Shell will probably pick up a 30% stake in state owned GAIL India’s proposed floating liquefied natural gas import terminal project at Kakinada in Andhra Pradesh. The stock of GAIL India is likely to react to this development in today’s trading.

Keep an eye on Engineers India. The company has reportedly entered the refinery and petrochemical sector in Nigeria by signing a USD 139 million deal for works of a refinery and a polypropylene plant with the Dangote Group. The stock is likely to react to this development and move northwards.

Here is something that can spur the ITC stock. The company has reportedly mapped as many as 20 lakh stores on its online store locator providing real-time availability of its products. The initiative is expected to push sales of its premium products.

Crude refiners HPCL, BPCL and IOC are three stocks that will shine in trading after the Iranian deal that was struck towards the end of last week. The lifting of the ban on insuring tankers carrying Iranian crude will help these companies source crude much easily. The stocks of frontline refiners are likely to remain in action following this development.