Index Trends And Stocks In Action For February 5, 2014

Indian Equity markets after opening on a dismal note on weak global cues and languishing in the read till late noon trade ended flat on Tuesday with several heavyweights stocks bouncing back from lower levels on some furious buying during the closing minutes. The Nifty closed at 6001 single tick down from its previous close of 6001.80. In our last write up we mentioned if we manage to sustain around 6930-5950 level we could witness a pullback rally and this was in line with our expectation. Nifty today recovered almost 60-70 points after registering day's low around levels of 5930, so this hints that the zone of 5900-5950 will act as a strong support for Nifty for short term. If Nifty breaks this support levels of 5900-5950 than we could see a major correction in coming trading session. On upside Nifty will face resistance around levels of 6045-6062.

Financial Technologies (India) (BSE Code: 526881) has completed the deal to sell its Singapore-based bourse SMX for USD 150 million (Rs 931 crore) to IntercontinentalExchange (ICE). Jignesh Shah-led FTIL operates commodity bourse MCX, stock exchange MCX-SX and the crisis-hit National Spot Exchange.  In November last year, FTIL had announced that its Singapore subsidiary has signed an agreement to sell 100% of its equity in Singapore Merchantile Exchange (SMX) to ICE Singapore Holdings. The stock is likely to remain in focus in today's trade.

Godrej Consumer Products (BSE Code: 532424) will increase its stake in African hair-care firm Darling Group that will give it control of the latter's Nigerian business. Godrej Consumer has entered into an agreement to increase its 51% stake in Darling Group. The stock may remain in limelight in today's trade.

Alstom T&D India (BSE Code: 522275) has received Rs 382 crore contract from state-run Power Grid Corporation (BSE Code: 532898) to supply transmission grid security solutions. Power Grid Corporation has selected Alstom T&D India to deliver its latest generation of grid security technologies for a critical energy management programme. Alstom T&D may trade with a positive bias in today's trade.

Tech Mahindra (BSE Code: 532755) posted an three-fold jump in consolidated net profit to Rs 1009.8 crore for Q3FY14 backed by growth in telecom, financial and manufacturing sectors. The company had posted a profit of Rs 321.5 crore in the same period last year.  Consolidated revenue grew 33.5% to Rs 4898.5 crore for the reported quarter from Rs 3,668.3 crore in the year-ago period. The stock may witness some buying interest in today's trade backed by strong results.