Index Trends And Stocks In Action For December 13, 2013

Indian Equity market started on weak note on back of weak global cues and continues its downhill journey for the third day in a row.  Sensex breached its important psychological level 21000 and closed at 20925. Heavyweights like Tata Motors, ONGC and Ambuja Cement witness profit booking. Whereas Tata Power and HDFC provided some support to market. Market breadth was in favor of Bears. In our last write up we mentioned bears will get active as soon as Nifty breaches support zone of 6280-6270 and this was in line with our expectation.  Nifty on Wednesday formed a Doji candlestick pattern and today it breached and closed below low of doji candle, this hints some weakness in market ahead. For intraday important support on downside is around 6200 and next important support is around 6170. If Nifty closes below level of 6170 than it will head to lower end of the range i.e around 6100. On upside Nifty has will face resistance around 6275-6310.

Lanco Infratech is in talks with Kolkata-based CESC to sell the Budhil Hydro Power Project. Deal talks are hovering around Rs 750 crore for the 70 MW hydro power project in Himachal Pradesh. It is also heard that negotiations are still on. Macquarie is the advisor to Lanco for sale of Budhil Hydro Project. Lanco needs to sell assets and infuse cash into the company to fulfill the terms of CDR ( Corporate Debt Restructuring). A consortium of lenders has given a nod to a Rs 7,700 crore CDR package. Lanco Infratech may remain in focus in today's trade and is likely to witness some volatility in the day's trade.

Sun Pharmaceutical Industries announced that the US FDA has granted its subsidiary final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Cymbalta, Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg. The stock is likely to witness some buying interest in today's trade.

Mahindra & Mahindra, announced that it would be raising the prices of its passenger and commercial vehicles by up to 2%. This increase would be effective from January 1, 2014. The stock may see some interest among investors and traders today owing to this announcement that came in post market hours yesterday.

Karnataka High Court has rejected a petition by Vijay Mallya-led Kingfisher Airlines challenging the move by a consortium of banks to take possession of its "Kingfisher House" property in Mumbai to realise part of the debts due to them from the airlines. Kingfisher Airlines Limited (KAL) had sought the high court's intervention to prevent the banks from taking possession of the property, which houses the airline's prominent offices, but Justice Anand Byrareddy rejected the contention. The stock may witness selling pressure in today's session.