Index Trends And Stocks In Action For December 26, 2013

Indian Equity markets opened on a positive note and remained in green for some time. After a great tussle between bulls and bear in second half bears got active and knocked of bulls which eventually led the markets to halt its upward journey. In our last write up we mentioned market will correct and see some consolidation that was in line with our expectation. Nifty repeated what it has been doing again- again, as soon as it comes near levels of 6310-6330 it faces strong supply and  it could not sustain for longer time and slips below 6300.  So now it's evident that only if Nifty sustains above 6330 on closing basis we will see a fresh breakout and we will head higher. For intraday important levels on downside for Nifty is 6250 and if we break this support next strong support is around levels of 6210. On higher side resistance for Nifty would be around 6300-6325. We don't expect much action in the index as it's expected to trade in range of 6200-6300, only on break of this action we could witness some good moves till than it should be stock specific approach.

The country's largest power producer NTPC (BSE Code: 532555) is readying to make a winning bid for the upcoming ultra mega power project (UMPP) and has sought exemption from the investment ceiling on the state-run utility. NTPC has written to the Ministry of Power, seeking exemption from the investment ceiling of Rs 5000 crore so that it can participate in the bids for the upcoming ultra mega power projects and some other projects being planned by state governments. The stock is likely to remain in limelight in today's session.

After selling its branded formulation business, Elder Pharmaceuticals (BSE Code: 532322) plans to focus on its anti-infectives' vertical and strengthen in-licence portfolio besides looking at expanding presence in global markets. At the same time, the company would explore the possibility of entering new therapeutics areas. Earlier this month, the company had announced to sell its branded formulation business, comprising 30 brands, to Torrent Pharmaceuticals for Rs 2,004 crore. The stock may witness some buying interest in today's trade.

Amtek India (BSE Code: 532282) has entered into an agreement to acquire substantial business interest in Germany based Kuepper Group, through its 100% subsidiaries. The Kuepper group is engaged in the business of iron and aluminium castings and integrated machines having 5 manufacturing units across Germany and Hungary. The stock may witness some buying interest among investors in today's trade.

As the going gets tougher in the Indian auto industry, Maruti Suzuki India (BSE Code: 532500) is driving into the rural markets to boost sales. The company, which devised aplan to tap rural markets five years ago, is planning to have presence in a total of one lakh villages across the country by March next year. The stock is likely to trade with a positive bias in today's trade.