Index Trends And Stocks In Action For December 27, 2013

Indian Equity markets opened on a muted note as there were no major cues from global market but as the day progressed market picked up some momentum and broader markets outperformed index. In last hour we saw some volatility due to expiry but bulls managed to erase all the losses and end in green. In our last write up we mentioned that market will move in narrow range and this was in line with our expectation market moved in narrow range of 35-45 points and saw some supply around levels of 6300. Nifty has been trading sideways for last three four trading session. Going ahead two important levels which will decided the course of market are 6260 on downside and on upside 6330. If Nifty sustains below 6260 than next level will be 6220 on downside which is next important support and if Nifty breaks 6330 on higher side we expect range expansion. After three four days of sideways movement market usually gives a big move but due to lack of any major trigger and holiday mood amongst investor we expect market to be range bound and sideways. For intraday resistance for Nifty on higher side is 6310-6330 and support on downside is around 6255-6220.

Board of Multi Commodity Exchange of India (BSE Code: 534091) decided to advise Financial Technologies (India) (BSE Code: 526881) to implement FMC Order dated December 17, 2013 by reducing its stake in the Company from 26% to 2% or below, within a period of 1 month hereof. The board also zeroed in on withdrawing the representation of FTIL Miten Mehta, on MCX Board in view of FMC letter dated December 26, 2013. The stock of Multi Commodity Exchange of India is likely to trade with a positive bias in today’s trade while that of Financial Technologies is likely to witness some selling pressure.

Bharat Heavy Electricals (BSE Code: 500103) has bagged order for the supply of Turbine Generator (TG) Package for 2x500 MW TPS at Neyveli. The order, valued at Rs 1023 crore. The order has been by BHEL from Neyveli Lignite Corporation, for their upcoming 1,000 MW Neyveli New Thermal Power Project at Neyveli, Tamil Nadu. BHEL’s scope of works includes manufacture, supply, erection, testing and commissioning of Steam Turbine Generators & Auxiliaries along with associated civil works. The stock is likety to witness some buying interest in today’s trade.

INOX Leisure (BSE Code: 532706) has informed that the Commercial Operation of the Company's new Multiplex Cinema Theatre at Madurai, Tamilnadu, having 5 screens and 1302 seats commenced from December 24, 2013. INOX is now present in 41 cities with 76 multiplexes, 296 screens and 80,851 seats. The stock is likely to witness some buying interest in today’s trade.

Steel prices are on likely to see upward movement in the new year after witnessing a lull of three months as leading domestic producer JSW Steel (BSE Code: 500228) has decided to increase the rates by up to Rs 1,000 per tonne (or up to 2%) across the board for January 2014. It is also heard in the market that other private companies may also follow suit. The stock is likely to trade with a positive bias in today’s trade. Buying interest in the counter in today's trade cannot be ruled out.