Index Trends And Stocks In Action For January 13, 2014

Indian Equity markets opened on quiet note however as the day progressed IT Stocks helped market to surge higher and as Nifty was approaching towards level of 6240 Indusind’s Bank numbers were out and due to higher NPA market gave thumbs down to the result and the rate sensitive stocks took u-turn as strong selling on concerns of higher NPA and market was off day’s high in no time.  Nifty closed the trade at 6171. In our last write up we mentioned if Infosys present robust number than Nifty will rally up to levels of 6240 and this was in line with our expectation and Nifty made high of 6239 and shed almost all the gains. If we look at current market, market seems to be divided into two parts. First part contains of midcap, Pharma and IT Stocks which are seeing good buying and are continuing to outperform the market and Second part Contains Financial and Banking stocks which are under severe selling pressure and any bounce in these stocks  is used for creating short positions. Now going forward if we look at Weekly picture it continues to look dismal as Bearish engulfing is followed by another bearish candlestick. On Daily chart RSI has dipped to lowest level and it has dipped significantly in last couple of days.  Going forward we expect market to be volatile and 6110 is key level to watch out and if Nifty breaks this level than we expect Nifty in short term to touch levels of 5970-6000 levels. On upside clearly 6235-6240 remains major hurdle.  Intraday Nifty on downside has strong support around 6140-6110. On upside 6210-6240 will act as stiff resistance.

India has emerged as one of the fastest growing markets for Tata Motors (BSE Code: 500570) owned Jaguar Land Rover (JLR), which posted record sales for 2013. The iconic British luxury brands sold 425,000 cars worldwide.  The record sales of over 400,000 cars marked the UK-based car maker's strongest-ever full year global sales performance while the US, Germany and India are now JLR's fastest growing markets. Tata Motors may witness some buying in today’s trade.

Diversified infra group GVK is likely to finalise stake dilution in its airport business over the next couple of months and the proceeds will be used to clear Rs 2,500-crore non-operational debt. GVK operates Mumbai and Bangalore airports. The company also ruled out taking the airport arm public as stake dilution to other investors will be the priority. GVK Power & Infrastructure (BSE Code: 532708) may witness trades with positive bias in today’s trade.

Realty firm Anant Raj (BSE Code: 515055) is planning to sell two hotel properties in the Delhi-NCR region for an estimated Rs 900 crore as part of the company's strategy to monetise non-core assets. The Delhi-based firm has 11 hotels, out of which, 6 hotels are completed while 5 other hospitality projects are under construction. The stock may remain in focus in today’s trade.

Apollo Hospitals Enterprise (BSE Code: 508869) Group is planning to invest around Rs 2,500 crore during the 2015-18 period and are looking to add another 2000 beds. The stock may remain in limelight in today’s trade.

Following the stiff opposition from petroleum ministry over the divestment of state-run IndianOil Corporation (BSE Code: 530965), the government is looking into options to sell the stakes to other public sector undertakings like ONGC (BSE Code: 500312) and Oil India (BSE Code: 533106) to meet the divestment target. The stocks in the news are likely to remain in limelight in today’s trade and may witness volatile trades in today’s trade.