Index Trends And Stocks In Action For 28th November 2013

Indian Equity market remained muted and traded in narrow range as traders remained on the sidelines ahead of derivatives expiry. Nifty ended on a flat note at 6057. In our last write up we have mentioned that the markets are likely to trade in narrow range for next couple of days and we expect market to show breakout or breakdown post expiry. Going ahead Nifty has a strong support around the levels of 6030 and if Nifty trades below this level then the next important support is around 5970. On upside Nifty have strong resistance around levels of 6110 and next resistance is around the levels of 6140. Option data suggest Nifty will see expiry in range of 6000-6100.

Power Grid Corporation of India, which will soon hit the market with a follow-on public offer, will seek shareholders' approval to hike shareholding limit for FIIs in the company to 30% from existing 24%. Power Grid Corporation of India has said that increasing the limit would provide more headroom for investments by FIIs in the company. The stock is likely to witness some buying interest in today's trade.

Tata Power's electricity generation increase by 62% in the first six months of current financial year. The country's largest private power producer generated 22,738 million units of electricity in the first half compared with 14,029 million units a year earlier. With increased generation capacity, the stock is likely to remain in limelight in today's trade.

The Finance Ministry has sent a draft note for the Cabinet Committee of Economic Affairs (CCEA) note on disinvestment of Coal India to the Prime Minister's Office for its consideration. Meanwhile, the government and Coal India have concluded the second round of overseas road shows held in Hong Kong, Singapore and Australia. The increased activity on the disinvestment front is likely to keep the stock in focus in today's trade.

Competition Commission has held on to its observation about Etihad gaining joint control in Jet Airways and "significant" rights to appoint directors with a 24% stake purchase, while rejecting a plea to "rectify" its order that approved the deal earlier this month. Jet Airways is likely to trade with a negative bias today owing to this new development.