Index Trends And Stocks In Action For February 18, 2014

Indian Equity markets managed to post prominent gains today, despite suffering from setback around mid morning session and then swinging in a somewhat listless way for much of afternoon session. The excise duty cut on automobiles announced by the finance minister who presented the interim budget in parliament contributed as well to the market's upmove. In our last write up we mentioned that Nifty would trade in range with barrier around 6085 on upside and it was in line with our expectation as Nifty saw some resistance around levels of 6081.

Now going forward the Nifty in order to move up carrying the momentum of last two days, the Nifty should get past 6085 comfortably and it should not fall below the level of 6024 which is an important support level for Nifty. If Nifty manages to fulfill this condition than next immediate resistance post 6085 level is around 6118, only if Nifty manages to clear this resistance we can expect the pullback swing to continue with strength.  For day trading important support for Nifty is around 6045 and next support is around 6024. On upside resistance for Nifty is around 6085 and next resistance is around 6118.

Auto maker Tata Motors (BSE Code: 500570) announced that they will cut prices of their products after Finance Minister P Chidambaram decided to reduce excise on automobiles in the interim Budget 2014-15. The company has already a run up in the recent past. Post this announcement further buying interest in the stock in today's session cannot be ruled out.

Bharti Airtel (BSE Code: 532454) which spent as much as Rs 18530 crore to buy telecom airwaves in the recently concluded auctions, has said that the consumer tariffs will see sustained rise for the next couple of years. However the extent of hike in voice tariffs is still to be looked at. The stock may trade on a volatile note in today's session.

The Vishwakalyan Kamgar Sanghatana (VKS), the labour union at Bajaj Auto (BSE Auto: 532977) has rejected an offer made by the management to give each of around 850 workers at its Chakan plant a wage hike of Rs 10,000 per month. The offer, similar to the raise given to 130-odd workers at neighbouring Akurdi a week ago. The stock may remain in focus in today's trade.

The Government auditor CAG today pulled up the state-owned BHEL (BSE Code: 500103) for delays in augmenting the equipment manufacturing capacity, needed for supporting the expansion of power sector. Thus, the manufacturing capacity expansion, which was required to be planned and completed in the initial years of the XIth plan was declared to have been completed by BHEL only towards the end of the plan, it said.  The stock may remain in limelight in today's trade.