Index Trends And Stocks In Action For February 10, 2014

Indian Equity markets opened on an optimistic note, tracking gains posted in US market overnight and that resulting firm trend across the Asian Peers. However the mood turned a bit caution as the session progressed and stocks from Oil, Information technology and FMCG sectors retracted from higher levels.  Metal stocks traded firm right through the session, contributing significantly to the market’s positive close. The Nifty closed at 6063 recording a gain of 26 points. In our last write up we mentioned that this pullback rally is likely to touch levels of 6090-6100 in coming days and on Friday’s trading session market almost touch level we have predicted. 

The rally which we have seen in four days has been quite insipid. We see sudden drop of 30-40 points in mid-session and at end of the day we bounce back to green zone. This hints some distribution is going on in market.  On weekly chart we could see a potential reversal candlestick pattern. Going forward as long as Nifty continues to hold 5910-5920 on closing basis we be in range of 100-150 points. Gateway for downside will only open if we break below this level. For day trading most crucial support levels are 60040 and 6000. On higher side major resistance is around 6110 and next resistance is around 6138.

Punj Lloyd (BSE Code: 532693) may sell its 17% stake in Gurgaon-based multi speciality Medanta Medicity Hospitals to the US-based private equity firm Kohlberg Kravis Roberts (KKR) for about Rs 654 crore. Punj Lloyd is looking at selling its entire 17% holding in Medanta to cut its debt. The stock may remain in focus in today’s trade.

The board of Tilaknagar Industries (BSE Code: 507205) in principally approved the company's proposal to acquire Indian Made Foreign Liquor (IMFL) brands from Kolkata based IFB Agro Industries (BSE Code: 507438) for an undisclosed amount. The company is looking to buyout IFB Agro's IMFL business either directly or through one of its subsidiaries. It will also help Tilaknagar bring under its fold IFB Agro's vodka brand Volga and Blue Lagoon gin - two of the most popular brands in Assam, West Bengal and Odisha. Tilaknagar Industries and IFB Agro Industries are likely to remain in limelight in today’s trade.

Thomas Cook  (India) (BSE Code: 500413) will merge its operations with resort owner  Sterling Holiday Resorts India (BSE Code: 523363) in a deal valued at Rs 870 crore. The deal will be structured in a multi-stage process in which 100 shares of Sterling will be swapped for 120 shares of Thomas Cook (India) . The stocks are likely to trade with a positive bias in today’s trade.

Andhra Bank (BSE Code: 532418) has proposed to raise Rs 800 crore during the next financial year to fund its growth plans. The bank is looking to raise funds through QIP or from Government of India. The stock may remain in focus in today’s trade.

Multi Commodity Exchange of India (BSE Code: 534091) said the voting rights of promoter  Financial Technologies (India) (BSE Code: 526881) will be capped at 2% with immediate effect. The decision was taken at a board meeting that considered an action plan to comply with the order of the Forward Markets Commission (FMC) directing the MCX to ensure that FTIL reduces its stake in the exchange to 2% from 26%. Financial Technologies may trade with a negative bias in today’s trade.