Index Trends and Stocks In Action For December 04, 2013

Indian equity markets opened on a negative note and hovered on the same level till closing session. The indices also witnessed low volume, which indicates that it may continue to trade in the current consolidation phase. However, 6170 is a strong support level for Nifty and on the closing basis it managed to close above this technical level. Below this level we may see bears getting upper-hand. On the other hand if we sustain above this level than Nifty is set for an up-move till 6300. Going ahead Nifty has a first hurdle at around levels of 6255-6270 and if Nifty closes above this level then the gates for 6320 will be opened. On downside 6145 and 6120 will act as strong support.

Coal India has signed fuel supply agreements (FSAs) for capacity of 71500 MW. Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78000 MW capacity should be met. Two deadlines set for signing of the fuel supply agreements by Coal India (CIL) with the power producers could not be adhered to. The stock may remain in focus in today's trade and trade with a positive bias.

The Marine Products Export Development Authority (MPEDA) exuded confidence that the export of seafood items is likely to exceed the target of USD 4.3 billion for financial year 2013-14 on account of rising demand in markets like Europe and Japan. This news which came post market hours yesterday is likely to drive some buying interest in Avanti Feeds which is also in the same business in the listed space.

KSK Energy Ventures expects to commission Unit-II of 600-MW of Mahanadi thermal power plant in Chhattisgarh early next year. The boiler light up for the second unit of 600-MW of the 6x600 MW (3,600 MW) plant and commissioning of turbine generator are likely to be completed within 45-60 days. Other works are also expected to be completed by that time to enable the company commission the unit. The stock may trade with a positive bias in today's trade.

The Prime Minister Manmohan Singh has asked administrative ministries to work out viable plan for disinvestment of BHEL and Coal India, including dividend payment, so as to achieve Rs 40,000 crore target in the current fiscal. The government has budgeted to raise Rs 40,000 crore from minority stake sale in PSUs in the current fiscal. With eight months of the fiscal over, it has managed to garner only over Rs 1325 crore through stake sale in six PSUs. The stock of BHEL may remain in focus in today's trade with a positive bias.

Hero Motocorp announced a joint venture with Milan-based Magneti Marelli for manufacture of new generation powertrains. Both partners will be investing a total of USD 8.5 million in the JV firm - HMC-MM Auto Ltd - in the next three years and around USD 27 million over the next ten years. The stock may receive some buying interest in today's trade owing to this development.