Index Trends And Stocks In Action For January 29, 2014

Indian Equity markets after opening on firm note and trading in positive territory for couple of hours, the indices slipped into the red zone after the Reserve Bank of India came out with a surprising repo rate hike. More than the rate hike what made investors and traders jittery the central bank's view on uncomfortable inflation levels and its concerns about slowing growth. The Nifty closed at 6126 down by 9 points from its previous close. The index touched high of 6163 and a low of 6085 during the day. In our last write up we mentioned Nifty has important support around 6100 and if Nifty breaks this level next support is around 6070 and this was in line with our expectation. Nifty on daily charts has formed long legged doji which is represented by significantly longer shadows and the body ideally in the middle. It represents indecision in a volatile market. If we look at momentum oscillator RSI it indicates some support at current levels and likely to see some sort of bounce in coming days. For day trading important support for Nifty is around 6100 and next support is around 6070. On upside 6145 will act as stiff resistance and next resistance is 6180. 

Rural Electrification Corporation (BSE Code: 532955) has invited bids to raise at least Rs 5 billion (USD 79.06 million) through an issue of five-year bonds. The bond sale will follow an issuance by Power Finance Corporation (BSE Code: 532810) soon after the central bank unexpectedly riased repo rate by 25 basis points to dampen inflation. The stock may remain in focus in today's trade.

IL&FS Transportation Networks (BSE Code: 533177) has been given the permission to commercially operate Mhow Neemuch border check post in Madhya Pradesh. MP Border Checkpost Development Company Limited, a subsidiary of the company, which had been mandated the development of 24 border check posts by MPRDC (MP Road Development Corporation), has been issued provisional completion certificate to commercially operate the Mhow Neemuch border check post. The stock may remain in focus in today's trade.

Sukhjit Starch and Chemicals (BSE Code: 524542) has said that it is set to commission new expansion at its manufacturing facility at Una in Himachal Pradesh with an investment of Rs 25 crore as it eyes topline reaching Rs 500 crore by end of current fiscal. Post expansion, the installed capacity of the plant will reach 1,150 tonne per day, he informed. The stock may witness some buying activity in today's trade.