Index Trends And Stocks In Action For January 08, 2014

Indian Equity markets witness merry go round ride in today's trading session with moves on both the side up and down. However at end market ended on weak note for the fifth consecutive trading session. In our last write up we mentioned that going ahead market will face selling pressure at higher levels and this was in line with our expectation as soon as market reached in zone of 6220-6230 it witness heavy selling. Now looking at daily chart Nifty has formed a triple top around levels of 6220-6230 so this will be a major roadblock going forward for Nifty. One positive thing we witness in today's trading session is that even though indices are trading in negative but the momentum on the downside is missing and buying is witness around support levels. As long as Nifty holds level of 6120 on downside it's likely that we move in range of 6120-6220. In next couple of days as the earning season will start we might see some directional move in index. For coming trading session important level on downside is 6140-6115. On upside Nifty will face resistance around levels of 6210-6235.

The government plans to sell stakes in Indian Oil Corporation (BSE Code: 530695) and Engineers India (BSE Code: 532178) this month and in BHEL in February as it rushes to meet its disinvestment target of Rs 40,000 crore. The stocks are likely to witness some buying interest in today's session.

Oil and Natural Gas Corporation (BSE Code: 500312) and Oil India (BSE Code: 533106) paid USD 2.475 billion to Videocon Group for acquiring 10% stake in a giant gas field off Mozambique. ONGC Videsh (OVL), the overseas arm of state-run explorer Oil and Natural Gas Corp, and Oil India had jointly bought Videocon Group's 10 per cent interest in the Rovuma Area-1 for USD 2.475 billion. The stocks are likely to remain in focus in today's trade.

Sonata Software (BSE Code: 532221) has partnered with Moovweb, a provider of advanced mobile web technology solutions for delivery of web content. With mobile device adoption significantly impacting the way businesses interface with their customers, employees, partners and vendors, delivering an engaging mobile web experience is gaining importance. The stock may witness some buying interest in today's trade.

Lenders of  Suzlon Energy  (BSE Code: 532667) have agreed to a settlement after the firm had defaulted on its foreign currency convertible bonds (FCCBs). In October 2012, Suzlon had said it would not be able to service about USD 200 million of its obligations towards some of its FCCB holders. The development triggered a cross default in another USD 228 million worth of FCCBs. The bondholders have agreed to subscribe to a fresh five-year, USD 500 million FCCB issue. The non-cash deal is likely to give the debt-laden firm more time to get its finances in order. The stock is likely to trade with a positive bias in today's trade.