Index Trends And Stocks In Action For December 16, 2013

Indian Equity markets corrected further on Friday and slipped below 6200. Nifty and Bank Nifty saw profit booking as traders were pricing in potential rate hike by the RBI. Stocks like Tata Motors, Wipro and Mahindra and Mahindra provided some support on other hand Jaiprakash Associates and ICICI Bank were top loser amongst heavyweight. Nifty on daily charts has been breached its important support around 6200-6220 as defined by upward rising trend line from swing lows of 5119. Nifty in last week failed to sustain above 6360 levels on weekly basis and now it has broken upward rising trend line this hints some weakness ahead. On weekly chart Nifty has formed bearish marabozu is a candlestick with large body with no tails, where the high and low matches the open and close. Marabozu represents dominant decision. So all these factors are against the bulls we may see some bounce back or pull back but we should use these pull backs to build short positions. For intraday 6140 is important support a next important support is 6100. On upside resistance is around 6220 and 6245.

Tata Motors said its global vehicle sales declined by 19.91% to 81,957 units in November 2013, compared to the year-ago period. The company had sold 102337 units in the corresponding period of 2012. Global sales of all passenger vehicles in November stood at 50703 units, down 4.49%, from 53089 in November 2012. Sales of luxury brand Jaguar Land Rover rose by 15.31% to 39956 units during November, as compared to 34649 in the same month last year. The stock may witness some selling pressure in today’s trade.

SREI Infrastructure Finance has filed draft red-herring prospectus (DRHP) with SEBI for a public issue of secured redeemable non-convertible debentures of face value of Rs 1000 each, for an amount up to Rs 100 crore. The funds raised through this issue will be used for various financing activities, repaying company's existing loans and business operations including capital expenditure and working capital requirements. The stock may remain in limelight and may trade with a positive bias.

ABB India is pursuing new growth opportunities in the country amid "muted" economic environment and deferring of capital investments. The company, which is part of Switzerland-based ABB Group that has operations in around 100 countries, noted that markets are yet to realise the tangible benefits from renewed momentum in reforms. The counter witnessed some selling on Friday December 13, but the stock may witness some buying owing to this development.

Dabur India launched a new range of skin bleach under its 'Fem Fairness Naturals' brand. Claiming it to be ammonia free, Dabur said that Fem Fairness Naturals has natural ingredients like saffron, milk and Vitamin E. The fairness skin market is estimated at Rs 2500 crore. Some buying interest in this counter in today’s trade cannot be ruled out.

Market regulator SEBI may look to re-examine its order on Jet Airways and Abu Dhabi carrier Etihad deal. SEBI is likely to approach the Competition Commission of India (CCI) seeking clarity on its order. The stock has already witnessed some selling pressure on Friday’s trade and owing to this news further selling in the counter cannot be ruled out.