Index Trends And Stocks In Action For 21st February 2014
DSIJ Intelligence / 21 Feb 2014
Indian Equity market opened on a weak note tracking negative global sentiments. In mid morning session nifty made some what of recovery but flattered soon and then slipped deeper into red in the final hour as traders indulged in some heavy selling. On intraday basis important support for nifty would be around 6055 and next important support is around 6010.
Indian Equity market opened on a weak note tracking negative global sentiments. In mid morning session nifty made some what of recovery but flattered soon and then slipped deeper into red in the final hour as traders indulged in some heavy selling. The nifty closed at 6091 recording a loss of 61 points. Banking stocks were major losers in today session. In today’s trading session after a gap down opening market failed to sustain above the opening of the day and closed near day low. On daily chart nifty formed almost a bearish marubozu candlestick pattern. This candlestick indicates that the day closed with sellers in control and aggressive selling. Considering the candlestick formation and reversal of RSI indicators we might trade sideways to negative. For day trading important support for nifty would be around 6055 and next important support is around 6010. On upside resistance for nifty would be around 6115 and next resistance around 6145.
Reports suggested that Country's largest two-wheeler maker Hero MotoCorp (BSE Code 500182) has decided to cut prices up to five per cent to pass on the benefit of excise duty cut announced by Union Finance Minister P Chidambaram in his interim Budget. The management has that "We have decided to pass on the entire benefit of the excise duty cut to our customers. We have spread out the price cut across our product portfolio ranging from two per cent up to five per cent with maximum reduction being Rs 4,500". We expect a positive impact on the stock as the sales volumes are likely to increase.
DCB Bank (BSE Code 532772) has sought an extension of deadline from the Reserve Bank to dilute promoter stake to 10 per cent, citing prevailing poor market conditions. As per the new guidelines, the RBI has set a March 2014 deadline for the DCB promoter Aga Khan Fund, which holds 18 per cent in the bank, and another Fund-related entity Platinum Jubilee Investments (holding 1 per cent), to dilute stake. If the bank gets extension, it would be positive for the stock. However if the plea is rejected, the stock may witness some downward move.
ABB (BSE Code 500002) announced that it has won orders worth around Rs 310 crore from Power Grid Corporation of India to supply power transformers and shunt reactors. The supply will be for substations being built to support the country's ultra-high voltage transmission grid development, the company said in a statement. The orders were booked in the fourth quarter of 2013 and in the first quarter of 2014. We expect a positive impact on the stock on the bourses in medium term.
The government today cleared Rs 6,400 crore FDI proposal of global healthcare company GlaxoSmithKline (BSE Code 500676) to acquire additional 24.33 per cent stake in its India arm. The Cabinet Committee on Economic Affairs ( CCEA) has approved the proposal of GlaxoSmithKline Pte Limited, Singapore for acquisition of 24.33 per cent shares in existing Indian subsidiary company of GSK Group. The news has already been discounted in the price and hence immediate movement in the stock price is not expected.
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