Index Trends And Stocks In Action For December 19, 2013

Indian Equity markets snaps it's losing as RBI governor surprised the D-street by keeping policy rates unchanged on hopes that inflation will fall going ahead. Street was expecting central bank to hike the repo rate by 25 basis points.  In our last write up we mentioned that Nifty if sustains above 6190 we could see levels of 6220-6230 on Nifty and on Wednesday Nifty made high of 6235 this was in line with our expectation. On daily charts Nifty has formed a bullish engulfing candlestick, which is a positive pattern. This pattern is formed with higher than average volumes so this is of high importance. Now the intraday and short term indicators have been pulled on the upside and as long as we hold levels of 6175 there is strong possibility that we see extension of this rally upto levels of 6300-6320. For intraday Nifty on upside has stiff resistance around levels of 6235-6280. On down side Nifty has strong support around 6175 and next important support is 6120.

Alstom India has informed that Alstom has been awarded a contract worth close to €125 million (i.e. Rs 1070 crore) by BHEL for the 2X500 MW Neyveli New Thermal Power Project located at Neyveli in the state of Tamil Nadu in India. Under the scope of the contract, Alstom will co-operate with BHEL in conceptualising, designing, engineering and supplying two tower boilers and the complete lignite milling and firing equipment, and critical components. Alstom Power may remain in focus for today's session with a positive bias.

The Coal Ministry has cancelled the allotment of a coal block in Madhya Pradesh to Jindal Steel and Power and Monnet Ispat & Energy as they failed to develop it. The Ministry further said the companies would not be eligible for allocation of any coal block in lieu of the de-allocated block. The companies did not respond to queries sent to them on the development. The stock of the Jindal Steel and Power and Monnet Ispat & Energy is likely to trade with a negative bias in today's trade following this development that came post market hours.

The commodity market regulator FMC has said Jignesh Shah and his firm Financial Technologies India are not 'fit and proper' to run any exchange in the country and charged him of being the "highest beneficiary" in the NSEL scam.  The stock is likely to witness some serious selling pressure owing to this development.

DLF completed its sale of its 74% stake in the insurance joint venture with Prudential Financial, Inc. of USA. The stake was bought by Dewan Housing Finance Corporation Limited (DHFL) & its group entities. The name of the JV shall change from DLF Pramerica Life Insurance Company to DHFL Pramerica Life Insurance Company. (DHFL PLI).The transaction is in line with the DLF's ongoing strategy to divest non-core businesses. The stock may witness some buying interest in today's session.