Index Trends And Stocks In Action For February 25, 2014

Indian Equity market opened sideways to negative however as the day progressed selective buying in Capital Goods, Healthcare and Banking stocks helped market to surge higher. A recovery in European markets and some stock specific news aided sentiment in afternoon trade. The Nifty ended up 30 points at 6186.10. In our last write up we mentioned buying momentum is likely to continue but there is major roadblock around 6190-6200 and market may find some resistance there and market did stopped around these levels so all this was in line with expectation. Today after a negative start, market slowly and steadily moved up without any panic and it managed to close near day's high does suggest that bull phase is gaining momentum.

One more factors which support the fact that bulls are gaining momentum is that after bullish day on Friday we saw follow up buying on Monday as well.  But from here on there are two scenarios possible, first is Nifty continues to move upwards and take resistance around level of 6220-6240 and then see some consolidation this scenario will hint of range shifting to higher end. Second scenario is that Nifty retraces back from 6200 and this will give us idea that market lacks participation and higher levels and it will be range of 150 points.   For day trading important support for Nifty is around 6158 and next support is around 6120. On upside resistance is around 6210 and next resistance is around 6245.

Infosys (BSE Code: 500209) laid the foundation stone of its proposed SEZ in Indore which will be created with an initial investment of Rs 400 crore. The foundation-laying ceremony of the SEZ, to be constructed on 130 acres of land, was held at the Super Corridor on the outskirts of city in the presence of Madhya Pradesh Chief Minister Shivraj Singh Chouhan. This SEZ will create employment opportunities for 5000 software professionals. The stock may remain in focus in today's trade.

While the competition in India's banking space is set to increase with new bank licences being allowed by Reserve Bank of India, DCB Bank (BSE Code: 532772) has set its sights on the smaller towns and villages to tap the untapped wealth there. The bank is looking forward to double their branch network, mainly in the tier-2 to tier-6 towns (having population less than 5,000). The stock may remain in limelight in today's trade.

Wipro (BSE Code: 507685) has partnered Perfecto Mobile to set up a mobility testing centre of excellence (CoE). Using Perfecto's MobileCloud platform, Wipro's experts will remotely test their customers' mobile applications on real devices across the globe. The CoE will enable customers to seamlessly deploy mobile apps with greater functionality to their consumers, partners and employees. The stock may witness some attention among investors in today's session.

Value added services firm Mahindra Comviva has partnered with Bharti Airtel (BSE Code: 532454) to deploy its enterprise communications platform in 16 African countries. The solution will enable Airtel offer a single platform to address messaging requirements of enterprise customers related to promotions, campaigns, contests or other similar services to mobile subscribers. The stock may remain in focus in today's session.