Index Trends And Stocks In Action For January 17, 2014

Indian Equity markets saw a listless trading session after a strong up move in last trading session. The Nifty ended with marginal loss of 2 points at 6318. Metals and IT Stocks saw some buying and helped index to trim its losses. On other hand Auto, FMCG and Bankex stocks saw profit booking and ended in red. In our last write up we mentioned Nifty is likely to see a range bound trade and it would not be cake walk for Nifty to cross hurdle of 6360 in one attempt and banking stocks needs to participate and guide index pass 6360 and this was in line with our expectation. The benchmark index traded in range of 35-45 points after a stellar run-up on Wednesday, once again Nifty saw some supply coming in around levels of 6350-6360 and we retraced back up to levels of 6300. RSI which has been trading in range with 60 levels acting strong resistance, was not able to cross its resistance in today's trading session, however it has just flattened. Going forward there is nothing wrong with the daily charts at current point of time we managed to hold on to support of 6290 and historical resistance are not crossed in a day or two trading session it requires sometime and participation from across the market.  So if we managed to break levels of 6360 and close above this in next couple of trading session than we might see a fresh breakout and some forceful short covering. However if we fail to cross in next couple of days than its anticipated that Nifty may take a u-turn and retest levels of 6220-6250. For intraday 6345-6365 remains a barrier on upside for the bulls and on downside 6280-6250 remains strong support.

Aksh Optifibre (BSE Code: 532351) has been awarded a Rs 200 Crore plus order for Package B of ambitious National Optic Fibre Network (NOFN) backbone project. The project is aimed at providing connectivity to over 250,000 gram panchayats across the country for better e-governance, e-health services and educational services. The stock may witness some buying activity in today's trade.

JK Paper (BSE Code: 532162) has expanded its production capacity at Rayagada, Odisha by an additional 1.65 lakh tonnes of copier papers and pulping capacity of 2.15 lakh tonnes. This takes the company's total capacity to 4.55 lakh tonnes. The total size of the branded copier paper market in India is estimated at 5.5 lakh tonnes of which the company has a 28% market share. The enhanced capacity is likely to bode well for the company and it may witness some buying interest among investors in today's trade.

Praj Industries (BSE Code: 522205) will set up the first commercial demonstration plant of ethanol production using agricultural waste by the end of 2014. To be set up in Western Maharashtra with the help of government, the demonstration plant will have a capacity of manufacturing 50 lakh litres of ethanol a year. The company plans to set up total two commercial demonstration plants in Maharashtra while one site will come up overseas. The stock may remain in limelight in today's trade.

SRS (BSE Code: 533569) has inaugurated its new Retail Jewellery showroom on January 15, 2014 located at Agra Chowk, NH-2, Palwal. This is Company's 2nd retail outlet in Palwal and 7th in Delhi - NCR. The new SRS Jewells store is spread across an area of 1500 sq. ft. and showcases an exquisite range of earrings, rings, neckwear and bangles in a plethora of designs and varieties. This small-cap stock may witness some buying in today's trade.