Index Trends And Stocks In Action For December 20, 2013

Indian Equity markets started saw a gap up opening but market dint hold gains for a long time, as day progressed markets witness profit booking on fears that Fed tapering, which will begin in January, may impact inflow of overseas money. Banking and Capital goods saw some pain in today's trading session. IT and Healthcare provided some respite to market and ended higher by more than 1%. Now we have outcome of two major events one was RBI policy and Second was Fed weather it will do tapering or not. The RBI event surprised the street and Fed outcome was already factored in. But even after a very good outcome of RBI and an average outcome from Fed dint have much impact on market and market was not able break its range of 6130-6300. So going forward its likely Nifty will be in this range of 100-200 with volatile swings. For Nifty to see a trending move Nifty needs to close above 6350 on weekly basis or else close below 6050 on weekly basis. For intraday, Nifty has strong support around 6130 on downside and next support is around 6095. On upside Nifty has 6220-6245.

Persistent Systems (BSE Code: 533179) has invested USD 150000-250000 in a US-based life sciences start-up called DxNow through Persistent Venture Fund. More than 85% of the company's business comes from the US markets. The company believes it can beat NASSCOM guidance for FY14 backed by the strong demand trends for the IT industry. The counter may trade with a positive bias in today's trade.

Shree Ganesh Jewellery House (BSE Code: 533180) has approached SBI, the Lead Bank of the Consortium for referring the matter to Corporate Debt Restructuring Cell for Corporate Debt Restructuring (CDR) of its debts. The Flash Report for the same is being submitted to the lead bank and SBI has convened the Consortium meeting of all the bankers on December 20, 2013. The stock is likely to witness some selling owing to this development that came post market hours.

Bharti Airtel (BSE Code: 532454) is believed to be in talks at advanced stages to sell its Sri Lankan business to UAE-based Etisalat. The company is seeking USD 500-600 million (Rs 3,000-3,600 crore) from the sale and had originally invested USD 300 million in the business. The company has about 2 million users in Sri Lanka and offers 3.5G services in the country's tier-1 cities. The stock is likely to witness some buying interest in today's session.

The Coal Ministry has issued show cause notices to Adani Power (BSE Code: 533096) and Jayaswal Neco Industries (BSE Code: 522285) for delays in developing the mines allocated to them for captive use. The stocks may witness some selling in today's trade.

State Bank of India (BSE Code: 500112) has cut its home loan rates by up to 0.4% for new borrowers. This announcement after the RBI kept its key policy rates on hold. Women borrowers would get an additional 0.05 per cent concession on card rates. SBI home loans will now be available under two slabs-- under Rs 75 lakh and above Rs 75 lakh. The company may trade with some positive bias in today's trade.

Multi Commodity Exchange of India (BSE Code: 534091) has called a meeting of its board on December 26 to decide on FMC's order to cut promoters stake from 26% to 2%. Forward Markets Commission (FMC) had ruled that Financial Technologies India (FTIL), the promoter and the largest shareholder, is not 'fit and proper person' to continue to be a shareholder of 2 per cent or more in the bourse. Volatility in the counter in today's trade cannot be ruled out.