Index Trends And Stocks In Action For February 24, 2014

Indian Equity market opened on a strong note on back of positive global cues and despite seeing a few rounds of selling here and there, ended the day with remarkable gains on Friday. Banking, Capital goods, Information Technology, FMCG and Metal sectors got back to their winning ways once again.  The Nifty closed at 6155. If we look at daily chart of Nifty we could see that market has oscillated in a range of 150 points in past 20-30 trade sessions.

Nifty on 27th January, 2014 opened gap down and made high of 6189 and this is swing high and in last one month Nifty has not managed to cross this swing high so this hints there is some choppiness and lack of confidence in bulls at higher levels. Considering end of the day candlestick pattern which is a bullish candlestick and positive divergence formed on RSI hinting some bullishness going forward, but what is more important to see that will Nifty this time get pass the swing high which is around 6189-6190. Once this level is crossed that Nifty might fill the gap which was created in last week of January. For day trading important support is around 6130 and next support is around 6100. On upside 6195 will act stiff resistance and next resistance is around 6238. 

NTPC (BSE Code: 532555) will set up a 1320 MW power project in Bihar entailing an investment of Rs 9,200 crore.  In this regard, a Memorandum of Understanding (MOU) was inked between NTPC, Bihar State Power Generation Company Ltd (BSPGCL) and Lakhisarai Bijlee Company (LBCPL). The stock may remain in focus in today’s trade.

Moody's Investor Services has offered to buy 26.5% more in Indian rating firm Icra (BSE Code: 532835) for Rs 530 crore as it competes with bigger rival Standard & Poor's to gain market share in a country where the debt market is poised to boom with the regulator paving way for new products. Its offer price of Rs 2,000 apiece for Icra is at a premium of 25% to the market price, but is conditional on it getting to raise its holdings to 55% from 28.5%. The stock may trade with a positive bias in today’s trade.

SAIL (BSE Code: 500113) plans to scale down investment by nearly 22% to Rs 9000 crore on expansion and modernisation at 5 integrated plants during the next fiscal.  Highest outlay of Rs 2960 crore has been proposed for the Bhiali plant, followed by Rs 1790 crore for the Rourkela plant. It also plans to invest Rs 1244 crore in Burnpur unit, Rs 642 crore in Bokaro unit and Rs 588 crore in Durgapur facility. The stock may remain volatile in today’s trade.

TVS Motor Company (BSE Code: 532343) announced cutting prices by up to Rs 3500 across its product portfolio following excise duty reduction announced in the interim Budget. The management in the public domain has indicated that the benefit of the excise duty reduction has been passed on to the consumers through price reduction ranging between Rs 850 and Rs 3,500 on the entire range of two and three wheeler models . The stock may remain in focus in today’s trade.

Oriental Bank of Commerce (BSE Code: 500315) will sell Rs 250 crore worth of bad loans to asset reconstruction companies shortly but rejected bids for another Rs 350 crore as the offer price did not match expectation. The bank was initially looking to sale Rs 600 crore of bad loans but decided to settled with selling Rs 250 crore as bids from asset reconstruction companies were too low. The stock may remain in limelight in today’s trade.