Index Trends And Stocks In Action For February 06, 2014

Indian Equity markets shrugging off a slightly listless start and a somewhat weak spell that lasted around till noon, post that it surged higher amid some volatility and ended with marginal gains. Stocks from Automobiles, Realty and Metal sectors helped index surge higher after recent steep losses. Information Technology and Some power stocks provided good support to the index. The Nifty closed at 6022 gaining 21.5 points. Nifty has managed to close just above the high of last candlestick and near to its 200-day EMA.

This rally will be termed as a pullback or short covering rally unless and until the index does not cross barrier crucial level of 6060. In fact a close above the 6060 level would only show some real strength in this pullback rally else expect a fresh sign of selling, if nifty does not close above 6060 in next couple of session. For day trading nifty has major resistance around levels of 6045 and next resistance is around 6060. On downside immediate support is around 5990 and next support is 5960. Major support for short term is around 5910.

Oil and Natural Gas Corporation (BSE Code: 500312) will sell an additional 15,000 cubic meters per day of gas to Steel Exchange India (BSE Code: 534748) for its captive power plant at Kothepeta. The company will supply gas from its Kammapalem field in Rajahmundry to Andhra Pradesh's largest private steel manufacturer. ONGC is likely to remain in focus in today's trade.

Engineers India (BSE Code: 532178) which is raising around Rs 500 crore through follow-on public offer route, said it has orders worth Rs 3232 crore in hand. In addition to the above the company have been awarded several other contracts. The stock may remain in limelight in today's trade.

Polaris Financial Technology's (BSE Code: 532254) iGTB division has announced the launch of its NACH-ready India Payments solution. The solution is compliant with major payments systems in the country including National Automated Clearing House (NACH), Next-Generation Real Time Gross Settlement (NGRTGS) and National Electronic Funds Transfer System (NEFT), claims the company. The stock may witness some buying in today's session.

Talwalkars Better Value Fitness (BSE Code: 533200) expects its margins to rise consistently due to higher value added services. Despite being a typically weak quarter for the company, it managed to clock same-store-sales growth of 7%-8% as opposed to the usual trend of 3%-4% percent. Having added 14 new gyms on a year-to-date basis, the company is looking to add further 25-30 new gyms in FY14. The stock may trade with a positive bias in today's trade.