Index Trends And Stocks In Action For February 4, 2014

Indian Equity markets after a weak start did manage a mild recovery on back of news that India's manufacturing activities grew highest in the current financial year so far, but post noon continue to weaken and kept drifting lower as the session progresses with investors indulging in some heavy selling across the sectors, tracking weak cues from global markets. The Nifty index closed at 6001.80 down 87.70 points from its previous close. As we mentioned in our last write up all intraday revival would be greeted by bears through aggressive selling and this was in line with our expectation. The bear's finally pushed Nifty for the first time below its 200-day EMA in last three months. This indicates that the bear's are on aggressive stance and now Nifty is nearing one of the vital support level which is around 5970-5950.  If we manage to sustain around this support zone we might see pullback or short covering rally, but again these pullbacks would be used by bear's for creating short positions. On other hand if Nifty breaks this support zone it should possibly see more downside. For day trading important support for Nifty is around 5970 and next support is around 5950. On upside 6035 and 6058 will act as stiff resistance. 

Lupin (BSE Code: 500257) announced the acquisition of Netherlands-based Nanomi BV for an undisclosed amount. With this, the company has made its foray into the technology-intensive injectables space. This acquisition will help the company to make significant inroads into the niche area of complex injectables. The stock is likely to trade with a positive bias in today's trade.

Greenko Group has signed an agreement with Lanco Infratech (BSE Code: 532778) to buy its 70 MW Budhil hydel power project. The Lanco Group subsidiary, Lanco Hydro Power, and Tejassarnika Hydro Energies, a subsidiary of Hyderabad-based Greenko, have agreed to strike a deal wherein the former will divest 100% stake in the 70 MW Lanco Budhil Hydro Power Project. The stock may remain in focus in today's trade.

Leading auto component maker Bosch (BSE Code: 500530), further amplifying its operations in India inaugurated a Research & Technology Center and also announced the plans to invest Rs 1200 crore in 2014. The stock may remain in limelight in today's session.

Bharti Airtel (BSE Code: 532454) is looking at ways to hive off its South Asian towers business. The company is likely to sell about 70%-80% in the tower arm. The stake sale talks have gained momentum after interest shown by prospective buyers. Among the companies that have displayed interest in the business are American Tower Corporation (ATC), PE firm Carlyle and Blackstone. Bharti's South Asia business includes Bangladesh and Sri Lanka geographies and it is currently valued at USD 400 million. The stock may remain in focus in limelight in today's trade.