Index Trends And Stocks In Action For February 11, 2014

Indian Equity markets after opening on a firm note on back of positive global cues the index retracted lower and then slipped into the red in the final hour of trading to close in negative zone snapping its four days winning streak as traders and investors stayed wary of building up positions ahead of economic data.

The Nifty closed at 6053 recording loss of 9 points. In today's trading session Nifty failed to cross level of 6100 due to profit taking. Now going ahead 6000-6030 is a strong support area and as long as the bulls would retain this level, the momentum would be on buying side. Generally after three days of volatile session index goes into sideways movement for next couple of days and then follows with a trending day.  For day trading most crucial support levels are 6020 and 5980. On higher side major resistance is around 6090 and next resistance is around 6128.

The Corporate Affairs Ministry is examining a report on the accounting practices of telecom major Reliance Communications (BSE Code: 532712), the Parliament was informed today. A report was called for in the matter from the Registrar of Companies (RoC), Mumbai, which is under examination, Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha. The stock may trade with a negative bias in today's trade.

Indian Overseas Bank (BSE Code: 532388) plans to raise Rs 400 crore by selling shares on preferential basis to Life Insurance Corporation. The management has informed that the board is seeking approval for the same in the Extra Ordinary General Meeting to be held on February 26 for making preferential allotment to LIC. The bank proposes to issue 8.15 crore shares to LIC at Rs 48.84 per shares on preferential basis to LIC or its schemes. The stock may remain in focus in today's trade.

Ceat (BSE Code: 500878) posted nearly three-fold rise in consolidated net profit at Rs 66.95 crore for the third quarter ended December 31, 2013 as against Rs Rs 22.43 crore for the same period of previous fiscal. Consolidated net sales of the company rose to Rs 1,428.18 crore for the third quarter, as compared to Rs 1,239.03 crore during the same period of previous fiscal. The stock may witness some buying in today's trade.

The Reserve Bank today allowed Foreign Institutional Investors (FIIs) to purchase shares in Dabur India (BSE Code: 500096) up to 30% of the firm's paid up capital. FIIs have been allowed to buy more shares in Dabur India as the company has passed a special resolution to enhance the limit for purchase of its equity shares and convertible debentures by FIIs. The FIIs as of December 31, 2013 holds 19.94% stake in the company. The stock may remain in limelight in today's trade.