Index Trends And Stocks In Action For January 23, 2014

Indian Equity markets ended marginally higher, shrugging off a weak start. A steady trend in Asian and European indices and some positive earnings aided sentiment. Pharmaceuticals and metal stocks were in trader's interest in today's trading session. Whereas Midcap and Small cap stocks were mostly quiet. The Nifty closed at 6339 up 25 points. After a subdued day the Nifty followed up with a trending day along with positive market breadth. The bank Nifty saw a strong spurt in today's trading session and we did mentioned in our last write up that bank Nifty is likely to touch levels of 11250-11260 and in today's trading session bank Nifty made exact high around levels of 11260 and closed off day's high. Nifty on daily chart has formed bullish engulfing candlestick pattern, as implied in its name this pattern suggests that the bulls have taken control from bears. Most important thing which emerged in today's trading session that RSI which have been trading in band of 30-60 levels, has managed to close above the higher end of the range which indicates momentum will be on buy side. Going forward 6280 will act as a strong support and if Nifty holds on to this level for next couple of day's than Nifty might see some range expansion. Intraday Nifty will face resistance around levels of 6360 and if Nifty sustain above this level next resistance is around 6400. On downside Nifty has strong support around 6280 and if Nifty break this level next important supports around 6240.

The Forest Advisory Committee of Environment Ministry has accorded final approval for diversion of about 636 hectares of Saranda forest land for mining to steel maker Steel Authority Of India (BSE Code: 500113). This will help the PSU to start its Rs 4700 crore Gua iron ore mine project. SAIL had approached the Ministry of Environment and Forest (MoEF) to secure forest clearance for diversion of 635.986 hectares of forest land in Durgaiburu lease of Gua iron ore mines located in Saranda forest area of Jharkhand. It had received preliminary forest clearance for 274.691 hectares of Durgaiburu iron ore lease in August, 2012. The stock may remain in limelight in today's trade.

Bajaj Electricals (BSE Code: 500031) will focus on non- electrical appliances to propel growth without losing grip on the existing product portfolio. Revenues from the non-electrical appliances are likely to be around Rs 80-100 crore this fiscal. Also, the company is expected to grow exponentially in the future on account of huge market requirement. The stock may witness some buying in today's trade.

Mahindra & Mahindra (BSE Code: 500520) is in the process of expanding its product line to light commercial vehicles (LCVs) at its manufacturing plant at Zaheerabad in Andhra Pradesh with an investment outlay of Rs 250 crore. The company has approached the government seeking sops as the existing plant will be expanded to make four wheeler sub-one tonne light commercial and passenger vehicles with a capacity of 92,000 vehicles per year. The stock may trade with a positive bias in today's trade.

Bharti Airtel (BSE Code: 532454) is expected to sell-off mobile towers in Nigeria, biggest revenue generating market for the company in Africa, for about USD 500 million by April. The company has less than 4000 mobile towers in the African country. The stock is likely to witness some activity in today's trade.