Index Trends And Stocks In Action For January 21, 2014

Indian Equity markets opened flat with positive bias despite weak global. After moving in a tight band in first half of trading session, the market rallied sharply in late afternoon trades with traders building long position in the IT Space. FMCG and banking stocks provided support to the market. Nifty managed to close above 6300 at 6303 up by 42 points. In our last write up we mentioned that Nifty is hovering around strong support of 21-day EMA and a bounce is expected if we continue to hold this level and this was in line with our expectation today we saw smart bounce from support levels in today’s trading session. Nifty is making same kind of similar moves, what we saw in first half of January where the index was moving in band of 6140-6240 and index consolidated around 7 trading session in this band and once index closed above the higher end of the range it saw 70-80 points trending move. Now the index is moving in range of 6240-6350, now the index needs to break this band on either side for clear trending move. It has already seen consolidation for two-three trading session so in next 4-5 trading session we may see a major trending moves. IT stocks have helped index to hold on to support levels of 6240-6245, now the banks and broader market needs to participate and take the index well past 6330-6350. As of now it looks like Nifty will trade in this band of 100 points i.e 6230-6350 with moves on either side. Intraday support for Nifty is around 6270 and next important support is 6240. On upside Nifty has strong resistance around 6335-6360.

Months ahead of completing Bokaro plant's capacity addition to 5.7 million tonnes (MT), Steel Authority of India (BSE Code: 500113) said that it plans to raise it further by another 10 MTPA with an investment of Rs 60,000 crore in the second phase. The investment, which is excluding the ongoing Rs 6,000- crore outlay for the Bokaro plant, would be the highest among five integrated steel mills where the company plans expansions in order to take overall capacity to 50 MTPA by 2025. The stock may remain in focus in today's trade.

Solar PV manufacturing firm Moser Baer Solar said that has crossed over Rs 100 crore worth of photo-voltaic module sales in the Japanese market.Moser Baer Solar, a subsidiary of Moser Baer India (BSE Code: 517140), has crossed more than Rs 100 crore PV module sales in the Japan market during April-December 2013. Moser Baer Solar has been exporting solar PV modules to Japan for last four years and the volume of shipments has increased significantly in last nine months. The stock may remain in limelight in today's session.

Tata Motors (BSE Code: 500570) has unveiled its next-generation petrol engine family, Revotron, that will power its future models in the passenger vehicle market. The company has also launched its first petrol engine from the series, Revotron 1.2T. The new engine is a turbo-charged inter-cooled Multi-point Fuel Injected (MPFi) petrol engine. The engine has been designed based on feedback from car owners, car enthusiasts and drivers from across the globe. The engine is being manufactured at Tata Motors’ Pune plant. The stock may witness some buying interest in today's session.