Index Trends And Stocks In Action For December 31, 2013

Indian Equity markets saw a healthy start but bulls could not capitalize on the good start and gave off all the gains in afternoon session. However some heavyweights like Bhel, Coal India, Reliance Industries and HDFC helped market to recoup losses but Nifty closed below 6300 level. In our last write up we mentioned that market will be range bound and movement will be seeing on both side along with some consolidation so it was in line with our expectation. On Nifty, zone of 6330-6350 is acting as stiff barrier and bulls crossing this level easily seems to be unlikely and on daily chart its evident we are make some as on Friday the up move we observed was led by low volumes and volumes were below average, bulls did manage to close above 6300 on Friday but it was not followed by higher top higher bottom candle, so this gives a hint that top around 6330-6350. So for next couple of day range for Nifty would be 6220-6340 break of this range will give clear direction for market. On daily charts Nifty has formed a bearish engulfing kind of candlestick and this candlestick is formed near supply zone so this hints some bearishness. For intraday 6270 will act as strong support zone and next important support zone is around 6230. On higher side Nifty will face resistance around levels of 6320-6355.

Cooper Tire & Rubber Co said it was not going ahead with the USD 2.5 billion merger with Apollo Tyres (BSE Code: 500877). Cooper said Apollo notified the company that financing for the deal was no longer available. The stock is likely to trade with a positive bias in today's trade following this news that came post market hours yesterday.

GAIL India (BSE Code: 532155) has received environmental clearance for setting up a 220 MW gas-based power plant at Raigad in Maharashtra at a cost of Rs 1,028 crore. The state-owned firm plans to use 1 million standard cubic meters per day of natural gas to generated 220 mega-watt of electricity at the proposed combined cycle power plant. The stock may remain in focus in today.

Sesa Sterlite (BSE Code: 500295) resumed iron ore mining in Karnataka after a gap of more than two years after securing the final nod from a Supreme Court appointed monitoring panel to restart operations. The resumption of operations comes eight months after the Supreme Court lifted the mining ban in Karnataka in April. The stock has seen an upside of around 4% in yesterday's trade. However, further upside in today's trade cannot be ruled out.

GMR Infrastructure (BSE Code: 532754) has informed BSE that the GMR Group has signed a definitive agreement with Malaysian Airports Holding Berhard (MAHB)  to divest its 40% equity stake in Istanbul Sabiha Gökçen (ISG) and LGM Tourism, for € 225 million (about Rs 1,910 crore). The stock may trade with a positive bias in today's trade.

The Foreign Investment Promotion Board approved UK-based Tesco Plc's proposal to enter the Indian multi-brand retail segment in joint venture with Tata Group company Trent (BSE Code: 500251) with an initial investment of USD 110 million (about Rs 680 crore). After the approval, Tesco will pick up a 50 per cent stake in Trent Hypermarket, a wholly owned subsidiary of Trent. The stock is likely to trade with a positive bias in today's trade.