Index Trends And Stocks In Action For January 27, 2014

Indian Equity markets snapped its four day winning streak on back of concern about the global economy following recent weak data from china, uncertainty about the U.S Federal Reserve’s take on stimulus plan and lack of prominent triggers from the domestic front resulted in a dismal close for indices on Friday. Bank, Capital Goods, Realty, Metal, Automobile, Healthcare, power and FMCG ended lower. IT stocks found some kind of support in early trade, but ended off their highs as the mood turned quite bearish on D-street past noon. In our last write up we mentioned if Nifty breaks levels of 6300, next important support for Nifty would be 6270 and Nifty took support near about this level. The Friday’s bear attack changed the complete technical picture of the market. The RSI which was inching to the higher levels and momentum which was getting stronger day by day on buying side came to halt courtesy bear attack. A mild correction or consolidation or sideway momentum is normal after 3-4 days strong rally but what we saw on Friday was a collapse, where bulls failed to hold on to any support and the indices closed near day’s low. Now going forward 6220-6200 is an extremely vital support level for Nifty once the bear’s pierce this zone than the doorway for levels of 6140-6100 would be open. Intraday Nifty will face resistance around levels of 6290 and if Nifty sustain above this level next resistance is around 6325. On downside Nifty has strong support around 6220 and if Nifty break this level next important supports around 6200.

Bharat Petroleum Corporation (BSE Code: 500547) plans to spend about Rs 13,000 crore on expanding its Numaligarh refinery in Assam by 2017-18. BPCL plans to expand the Numaligarh refinery to 9 million tonnes from the current 3 million tonnes. The stock may remain in limelight in today’s session.

Tata Chemicals (BSE Code: 500770) forayed into the Reverse Osmosis water purifiers category with the launch of Tata Swach range of Silver RO Water purifiers. Silver RO Water would be available in two variants - Platina RO and Ultima RO+UV, pricing Rs 13,999 and Rs 16,999, respectively. The stock may witness some investors interest in today’s trade.

Global investment banker Goldman Sachs is likely to acquire 26% stake in Indian medical equipment maker Opto Circuits (India) (BSE Code: 532391) for around Rs 300 crore. Opto Circuits specialises in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies. The stock may trade with a positive bias in today’s trade.

Oil Ministry will finalise in the next two weeks the financial guarantees that Reliance Industries (BSE Code: 500325) will have to submit for getting nearly double the price for natural gas from main fields in KG-D6 block. The government had last month decided to allow RIL higher gas price provided the firm gave bank guarantees to settle any claim against it over a shortfall in its gas output. The stock may witness some volatility in today’s trade.