Index Trends And Stocks In Action For December 12, 2013

Indian Equity market ended on negative for second day in a row after touching landmark of all time highs on Monday. However the bulls got active in last half an hour and this helped Nifty to close above 6330 at 6307. Capital Goods and Auto Stocks witness some profit booking and ended down by 1% or higher. On other hand FMGC stocks provided some support to the market. In our last write up we mentioned about importance of 6280 on Nifty and what we witness was Nifty made exact low of 6280 and took support and bounced back sharply up above 6300 in no time and we also predicted that it will be day of consolidation, so this was in line with our expectation.  Now going ahead as long as bulls manage to hold on to support 6280-6270, Nifty will continue to trade in narrow range and dip should be used to build long positions. If Nifty breaches this level and sustains below levels of 6270-6280 than fresh short positions can be build for a possible down move up to levels of 6230-6220. On higher side Nifty has stiff resistance around 6340-6380. RSI is flattening and this hints big movement might be seen in coming trading sessions.

Global oil giant BP Plc and its partner Reliance Industries will invest USD 5-10 billion to quadruple natural gas production by 2020. RIL-BP, who are currently producing about 11.8 million standard cubic metres per day of gas from the flagging eastern offshore KG-D6 block, is targeting newer fields in KG-D6 block and gas discoveries in neighbouring north-east coast and Cauvery basin to raise output. The stock may remain in focus for today's trade.

Hero MotoCorp has acquired around 60% stake, in its joint venture with Italian firm Magneti Marelli. Earlier this month, the partners--Hero Motocorp and Magneti Marelli had announced plans to invest USD 27 million in the JV over the next ten years. The JV is targeting sales of around USD 100 million in the first five years. The partners had said they would invest USD 8.5 million in ratio of 60:40 JV over a period of three years. The stock of Hero MotoCorp may trade with a positive bias in today's trade.

Ultra Tech Cement announced plans to set up two cement plants entailing investments of over Rs 5000 crore. This is being considered as the biggest investment by any company in the hill state so far.  Ultra Tech Cement is going to set up two cement plants one at Tyuni in Dehradun district and another at Someshwar in Almora district. The stock is likely to trade with a positive bias in today's trade following this development that came post market hours yesterday.

Cadila Healthcare along with Zydus Pharmaceuticals (USA) Inc, have entered into an agreement with Warner Chilcott Company to settle all outstanding patent litigation related to Asacol HD (mesalamine) delayed-release tablets. The agreement remains subject to preparation and execution of definitive documentation. The stock is likely to remain in focus for today's trade and may witness some buying interest.

Canara Bank will receive capital infusion of Rs 500 crore from the government. The bank may raise Rs 2,500 crore from the market through various modes if it gets the amount at "good price". The government wanted the bank to focus more on retail credit, the capital infusion may go up to Rs 600 crore. The stock is likely to witness some buying interest in today's trade.