Index Trends And Stocks In Action For December 17, 2013

Indian Equity markets continue its downfall for the sixth consecutive session on Monday. At one point Nifty was down by half a percent post announcement of WPI number which sky rocketed to 14-month high at 7.52 per cent in November. However some support from IT stocks helped the index to close with marginal loss. In our last write up we mentioned that all the technical indicators are against the bulls and we may see a weak opening and this was in line with our expectation. We also highlighted importance of 6140 on Nifty as a crucial support and Nifty made low of 6146 and bounced smartly. Now market is continuing its sequence of higher top higher bottom, which is a bearish pattern. One more important point is once a market moves four days against the prevailing trend, it's likely that the prevailing trend i.e. uptrend in this case has diminished or entered into consolidation or corrective phase. Last time we made a top in month of November we saw back to back 8 days of consolidation and correction in Nifty, this time we see a same position we may continue to trend down or consolidate for next couple of days and then see a strong pull back. For intraday Nifty crucial support is around 6140 and once we sustain below this level next important support is around 6100. On higher side Nifty has resistance around 6190-6225.

Clariant Chemicals (India) will acquire the master batch business of Gujarat-based Plastichemix Industries for Rs 135 crore and the deal is expected to be completed latest by March. The company also announced it plans to sell its leather services business for Rs 156 crore. These two proposals were considered and approved at the company's board meeting held yesterday. The stock may trade with a positive bias in today's trade.

Tata Consultancy Services expects to do better than what it has done in 2013 so far. The company said that hiring would also be better in next financial year. The company is preparing for the next year by deepening its position in different geographies where it is present right now. This positive outlook by the management is likely to bring in some positive sentiments on the stock. Hence, buying in today's session cannot be ruled out.

Alstom T & D India informed in respect of its land in Bengaluru, which was previously used for manufacturing instrument transformers and the sale of which has been duly authorised by the shareholders of the Company, has entered into an 'Agreement for Sale', with a large Indian Business Group company, for a total sale consideration of approximately Rs 120 crore. The stock may witness some buying interest in today's trade.

Godrej Consumer Products is confident that the sector will continue its outperformance. This will be on the back of uptick in the urban demand and the rural demand is expected to be strong due to good harvest. The company doesn't see company's margins coming under pressure going ahead, due to heavy investments it has made in advertisements.  The positive outlook shared by the senior management is likely to bring in some buying in the counter in today's trade.