Index Trends And Stocks In Action For January 1, 2014

Indian Equity markets opened above the psychological barrier of 6300 and close around level of 6304. It was an unexciting day for market as Nifty moved in range of 20-25 points amid thin volumes on the last day of year. The broader market continued to outperform the benchmark indices. In our last write up we mentioned we don’t expect any major move in market due to holiday mood across the investor and trader community and market will trade in narrow range. Going forward we don’t expect much action in market for a day or two as the market is expected to trade in narrow range. Post holiday session market participant will take cues from the quarterly results and these cues will give provide perfect path for the market. Till then market would be in sluggish range of 6210-6330. For intraday Nifty is likely to face resistance around 6335 and next resistance level is around 6360. On down side Nifty has strong support around 6270 and next support around 6235. DSIJ Team Best wishes for a Prosperous New Year Full of Health, Wealth and Contentment.

State Bank of India (BSE Code: 500112) has got shareholders' approval for raising up to Rs 11,500 crore by way of Qualified Institutional Placement (QIP) or public offer. Shareholders have passed special resolution to create offer to issue and allot by way of QIP/FPO or any other mode, as may be approved by the government and RBI, such number of shares of Rs 10 each as decided by the board in their discretion, up to Rs 11,500 crore or such amounts. The stock may remain in focus in today’s trade with a positive bias.

Coromandel Engineering Company (BSE Code: 533167) has informed that a meeting of the rights issue committee of the board of Directors of the Company will be held on January 03, 2014, to consider issue price per rights equity share of face value of Rs. 10 each. It will also decide on the number of rights equity shares which an eligible equity shareholder as on the record date will be entitled along with the record date. The stock is likely to remain in limelight in today’s trade.

Adani Power (BSE Code: 533096), India’s largest thermal private power producer and part of the Adani Group, announced that its state-of-the-art 4620 megawatts (MW) power plant at Mundra, has set a record by attaining the highest generation of 4,644 MW, making it the only power station of such a gigantic size to reach a significant milestone in electricity production. The stock is likely to witness some buying interest in today’s trade.

On the economic front, the eight core industries' output grew 1.7% in November 2013. This was lower than the 5.8% growth recorded in same month last year. The eight core industries viz. coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity have a combined weight of 37.90% in the index of industrial production (IIP). A lower-than-expected core industries' print could imply muted growth for industrial production in November this year.