Index Trends And Stocks In Action For February 03, 2014

Indian Equity markets ended on a positive note on Friday, snapping a five-session losing streak but amid lackluster traders, movements were quite sluggish and gains were just marginal as investors remain watchfully amid lingering worries about the outlook for economy.  In our last write up we mentioned that we are expecting a bounce back as indicated from the candlestick formation on Thursday trading session and market moved in line with our expectation. Nifty is showing some kind of support around zone of 6000-6040 and buyers are trying to accumulating quality stocks around this support zone. In fact the end-of-day bar chart pattern suggests there are enough buyers to support market close to this zone of 6000-6040 for the index. It won’t be cake walks for bear’s to pierce support level of 6000 in one go. However as per the current indication upside looks capped up to levels of 6120-6150. Most decisive support levels for the Nifty are around 6040 and 6000. On upside resistance is around 6115 and 6135.

Petronet LNG (BSE Code: 532522) the nation's biggest liquefied natural gas buyer, plans to lease out one of the two storage tanks at its newly commissioned Kochi LNG import terminal to make the under-utilised facility commercially viable. The 5 million tonne a year LNG import facility, which was commissioned in September, operated at just 5% of its capacity in the third quarter (October-December) of the current financial year as pipelines carrying the gas to customers are not yet ready. The stock may remain in limelight in today’s trade.

After huge success of its existing models like Scorpio and XUV 500, auto major Mahindra & Mahindra (BSE Code: 500520) is working on a new mass-market SUV and plans to position it as the lowest-price vehicle in this segment. The company is currently working on 2-3 platforms for this new SUV, which it plans to launch beginning 2015 at a price even below that of Scorpio. The stock is likely to trade with a positive bias in today’s trade.

Maruti Suzuki India's (BSE Code: 532500) monthly sales for the month of January 2014 fell 10.3% on YoY basis to 102,416 units, on weak demand in both domestic and export markets. Local sales for India's largest car maker fell 6.3% to 96,569 units while export sales nearly halved to 5,847 units from 11,179 units last year.  The stock may witness trade with a negative bias in today’s trade.

Bharti Airtel (BSE Code: 532454), Vodafone, Reliance Jio Infocomm and five other telecom firms will battle it out at the spectrum auction today. The government expects to garner at least Rs 11,300 crore. The Department of Telecom has put on the block around 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band. DoT has reduced the quantum of spectrum to be sold in 1800 MHz band in 10 circles, including Delhi, Kolkata and Mumbai, from about a total of 403 MHz planned earlier. Telecom stocks like Bharti Airtel, Idea Cellular (532822) and Reliance Communications (BSE Code: 532712) may trade on a volatile note in today’s trade.