Index Trends And Stocks In Action For 27th November 2013

Indian equity markets lost nearly half of its previous day’s gains as Nifty declined by 56 points to close at 6059. Banking and rate sensitive were under pressure; however consumption and IT stocks were relatively stable. Going ahead market may see some support around levels of 6030 and if nifty breaks this level next important support is around 5970 which is double bottom. On upside nifty has strong resistance around levels of 6110-6138. We expect market to trade in range of 6030 on downside and on upside 6138, so a very narrow band of 70-80 points till the expiry.

Voltas has bagged three overseas project orders worth Rs 1000 crore in the Middle-East. The first project is for a 120-bed integrated health centre and workers’ hospital in Qatar. The second one is for a sports hall and administrative office in a 5,350-seat indoor stadium being built to host the World Cup Handball Competition scheduled for January 2015 in the country. The third project is for a 5-Star hotel, the Kempinski Wave in Muscat. The stock is likely to trade with a positive bias in today’s trade.

Biocon has received approval from the Indian drug regulator to market its biosimilar trastuzumab developed jointly with Mylan for treating breast cancer. The approval for biosimilar Trastuzumab in India is an extremely important milestone for Biocon as it is the first biosimilar version of Herceptin to be brought to the market. The stock may witness some buying in today’s session and trade in the positive zone.

Tata Power is looking for more acquisitions as part of a USD 260-million-a-year investment push into renewable energy, following last month's purchase of a wind farm in western Gujarat from AES Corp. The stock may receive some attention in today’s trade following this development.

On the policy front, The Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram, is likely to meet next week and discuss the long-awaited mergers and acquisitions (M&A) rules. The EGoM last met on November 22 when it was to take call on M&A guidelines that is expected to pave way for consolidation of mobile phone companies in the sector. The ministers had decided on spectrum base price and other details for the third round of auction at the meeting. Telecom stocks like Reliance Communications, Bharti Airtel may remain in limelight in today’s trade.