Index Trends And Stocks In Action For February 17, 2014

Indian Equity markets ended on high note on Friday on back of data showing a drop in wholesale price inflation in January 2014. The Nifty settled at 6048 gaining 47 points. Nifty on daily chart has seen some good buying around support levels of 5970-5980. So value buying helped market to climb and close above 6000 mark. The market is still in a sideway and range bound mode and we can say this as we witness despite several attempts Nifty failed to close above major hurdle of 6100 and on downside Nifty is not able to break 5920 on closing basis, even after giving a clear downtrend signal on Thursday. Market is waiting for some kind of trigger which could give them a clear direction. Otherwise it seems it will trade in range of 150-180 points. For day trading most crucial support levels are 6000 and next important support for Nifty would be around 5970. On higher side major resistance is around 6085 and next resistance is around 6105.

Oil and Natural Gas Corporation (BSE Code: 500312) plans to raise its natural gas output by over 53% to 100 million standard cubic metres a day by 2017-18 as new fields start off the west and east coasts. The newer gas finds will help turn the tide for ONGC, which has seen oil and gas output stagnating in recent times. The stock may remain in focus in today’s trade.

BEML (BSE Code: 500048), expects to improve its sales this year despite a downturn in the mining sector, riding on large orders for metro and mainline coaches for its railway division. The mining sector has been facing a downturn and continues to remain sluggish. However, the company has still been able to post positive growth this year. The growth is driven by coal, cement and construction sector. The stock may remain in limelight in today’s trade.

Hit by forex losses and high fuel costs, budget carrier SpiceJet (BSE Code: 500285) reported Rs 171crore loss for the quarter to December, as against a profit of Rs 102 crore in the year ago quarter. The red ink came even as the carrier saw its revenue growing by 14% to Rs 1,807 crore and a traffic growth of 10% during the quarter. The airline booked Rs 63 crore in forex losses. The stock may witness some selling pressure in today’s trade.

The Securities and Exchange Board of India (SEBI) has issued a show-cause notice to Etihad Airways, asking whether the Abu Dhabi-based carrier violated takeover rules in acquiring a 24% stake in Jet Airways India (BSE Code: 532617). SEBI issued the notice to Etihad on Wednesday and asked for a response on why it should not make a tender offer to Jet public shareholders as part of takeover rules.  The stock may remain volatile in today’s trade.