Index Trends And Stocks In Action For January 3, 2014

Indian Equity markets after consolidation of seven trading session saw a blistering opening and in afternoon session Nifty was well past 6350. However this upwards momentum  was used by traders and investors to book profit and in last one hour or so we saw a panic sell off and Nifty was down by more than 100 points from day's high.  The sensex was pushed blow 21000 mark and Nifty managed to close around 6221 down by 1.28%. Nifty on daily chart has formed a bearish candlestick and this candlestick has engulfed past 7 days candlesticks and volume saw huge jump in today's trading session. Now that we have seen a breakdown of 7 days trading range on lower end this suggest that going forward any bounce will be used to create short position and bulls will face tough time ahead. One thing which supports this statement is that market hardly showed any sort of respect to any of support which Nifty managed to hold in last 7 trading session and we just saw a free fall.  Now going forward important support is around 6190 for Nifty if bears pierce this level tomorrow than it would be confirmation of bear dominating the bull. On upside Nifty will face resistance around 6255-6278.

TVS Motor Company (BSE Code: 532343) reported 2% increase in total sales in December 2013 at 159,459 units as against 156,221 units in the same month previous year. The total two-wheeler sales increased marginally by 1% at 153,358 units in the month from 151735 units in the year ago period. Domestic two-wheeler sales were down by 1.41% at 132,664 units against 134,566 units in December 2012. The stock is likely to witness volatile trade with a negative bias in today's trade.

Buoyed by increased sales in both domestic and export markets, Steel Authority of India (BSE Code: 500113 ) has clocked a 6% cent rise in sales during October-December period to 2.98 million tonnes (MT). Exports of the company during the period went up by 122% to 1.77 lakh tonnes. Production too rose by 4% over the same period last year.

Hindustan Construction Company (BSE Code: 500185) has received a Letter of Award from IRCON International for Construction of One Tunnel and Two bridges between Aprinchala and Sumber Stations on Dharam and Qazigund Section of the Udhampur-Srinagar-Baramulla New Broad Gauge Railway Line Project in Jammu & Kashmir. The value of the contract is Rs. 442.52 Crore. The project will be completed in 48 months. The stock is likely to witness some buying in today's trade.

Tata Motors (BSE Code: 500570) monthly sales for the month of December 2013 stood at 37852 units including exports. The monthly sales numbers are in line with its other counterparts. However, the decline is havoc for the company as the monthly sales declined by 42.28% on YoY basis and a decline of 7.37% on MoM basis. The stock may trade with a negative bias in today's trade.