Index Trends And Stocks In Action For February 13, 2014

Indian Equity markets started off firm on back of positive trend in global markets but investors and traders digesting not so interesting railway budget and a mixed batch of earnings report, chose to refrain from indulging in any aggressive buying today. The Nifty settled at 6084 gaining 21 points from previous close. Banking, Capital goods and Oil Stocks had a fairly good outing. Metal and FMCG stocks traded weak. Railway stocks which started off on firm note ended notably lower as there was no big positive from the interim rail budget tabled today.

Nifty on daily chart has formed a gravestone doji candlestick pattern which is a bearish reversal candlestick pattern. In this candlestick pattern we have long upper shadow and small real body. Gravestone doji implies that the bulls that were in control push the price significantly higher in midsession. Then, the bears come out and begin dominating the bulls and close the price very near the opening. A market which is in control of bulls does not close at the lows of the day after opening firm, this defines bears are in control. Overall market will remain sideways and every day we will have some stock or sector holding the market.

However this will not last for long at some point of time all sectors or stocks will get exhausted and will start correcting and once Nifty breaks support of 6000-6030 it would open gates for 80-90 points down move. For day trading most crucial support levels are 6050 and 6000. On higher side major resistance is around 6100 and next resistance is around 6138.

Piramal Enterprises (BSE Code: 500302) has formed a strategic alliance with Canada Pension Plan Investment Board (CPPIB) to provide rupee debt financing to residential projects in Indian cities.  Piramal and CPPIB will initially invest USD 250 million each in the venture, which will focus on providing project-level debt to local developers across Mumbai, Delhi region, Bangalore, Pune and Chennai markets. The stock may remain in focus in today's trade.

Rashtriya Chemicals and Fertilisers (BSE Code: 524230) reported 28% fall in net profit at Rs 52.90 crore for the third quarter ended on December 31, 2013. It had clocked net profit of Rs 73.98 crore in the October-December quarter on 2012-13 fiscal. Total income for Q3FY14 declined to Rs 1,407.50 crore as against Rs 1,545.17 crore in the same period last fiscal. The stock may witness some selling pressure in today's trade.

ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporation (BSE Code: 500312), has signed separate agreements with two consortiums of international banks to raise USD 2.5 billion by way of offshore borrowings. This has been done to finance its acquisition of 10% participating interest in Rovuma Area I Block in Mozambique offshore. The first facility for a five year term amounting to USD 1.775 billion was signed with consortium of international banks, including ANZ, Bank of Nova Scotia, BTMU, DBS, Mizuho, RBS, Societe Generale, SBI and SMBC. The stock may remain in limelight in today's trade.

Apollo Tyres (BSE Code: 500877) reported a consolidated net profit of Rs. 338 crore for Q3FY14 up by 87% as compared with Rs 181 crore in the same period previous year. The company's net sales also increased by 8% on year-on-year basis to Rs. 3,475 crore during the October-December quarter as against Rs. 3,217 crore in the corresponding period in 2012, the company said in a statement. The management has said that the improved and expanded product range in key markets for the company has helped the company in reporting incremental revenues for the third quarter. The stock may witness some buying interest in today's trade.