Index Trends And Stocks In Action For February 12, 2014

Indian Equity markets finished with just modest gains on Tuesday despite opening on a firm note and seeing a bright spell in midsession. Information Technology stocks had a good day out. The Nifty closed at 6062 off the day's high of 6081, gaining 9 points. We mentioned in our last write up that the index will trade sideways or range bound movement and this was in line with our expectation as index moved in range of 20-30 points.

Again an attempt was made by the index to cross hurdle of 6100, but it failed. This similar kind of sideways movement index witness when it was trading at crucial level of 6330-6350, this barrier was not takeout of by bulls for 3-4 trading session and then it gave a big trending move of 250-300 points on downside in couple of trading session.  So again around 6100 we are witnessing similar kind of sideways movement were Nifty is not able to take out levels of 6100 after several attempts.

So in next couple of days if index is not able to cross and close above 6100, than we might see a big trending move on downside as the momentum indicators have see dip and inching downwards. Going forward as long as the bulls are able to hold on to levels of 6000-6030, we will see a range bound movement. Once these levels are taken out than the bears will dominate and gateway for 5970-5950 would be open. For day trading most crucial support levels are 6040 and 6000. On higher side major resistance is around 6090 and next resistance is around 6130.

Encouraged by pick-up in demand, state-owned iron ore miner NMDC (BSE Code: 526371) is looking forward to clocking highest-ever production and sales to over 30 million tonne (MT) in the current financial year, ending March 31, 2014. The stock may remain in limelight in today's trade.

Mahindra & Mahindra (BSE Code: 500520) operation in South Africa has had its best annual sales in a decade of operating in the country during 2013, bolstered primarily due to some government tenders. The company sold 4056 units of the range it offers in South Africa, maintaining a consistent upwards sales trend with a 4% increase on the previous year. The stock may remain in focus in today's trade.

The Finance Ministry Tuesday sanctioned Rs 10000 crore as cash subsidy to fuel retailers like Indian Oil Corporation (BSE Code: 530965) to make up for part of the losses they incurred on selling diesel and cooking fuel below cost in December quarter. The sanction is against Oil Ministry's demand of Rs 26,000 crore. The stock may remain volatile in today's trade.