Index Trends And Stocks In Action For March 04, 2014

Indian Equity market opened on a weak note on back of weakness in Asian markets amid mounting tensions between Russia and Ukraine and a likely surge in energy prices hurt sentiment and prompted traders to indulge in heavy selling on Monday. The Nifty Index closed slightly off the day's low at 6221 recording a loss of 55 points. Consumer Durables stocks outperformed the market. Whereas Healthcare, Information Technology, Automobiles, Power, Banking and Capital Goods ended lower. The bulls had an upper hand in last couple of trading session, however due to some tensed news investors and traders preferred to book out profit.

Now going forward it would be interesting to see weather bulls manage to hold on to levels of 6180-6170 which is an important support zone for the Nifty. So if bulls manage to hold on to levels of 6170-6180, it would be buying on support strategy but in case some of these external factors start getting worsen and there is lack of clarity it would be signal for fresh shorting opportunities as market does not like uncertainty. On upside 6260 would act as stiff resistance and if we cross this resistance next resistance is around 6290.

Hindustan Construction Company (BSE Code: 500185), in a joint venture with GVPR Engineers, has bagged an order worth Rs 903 crore from Karnataka Neeravari Nigam. The contract is for diversion of flood water from Sakleshpura (West) to Kolar/Chikkaballapur (East) under Yettinahole diversion project-package-4. HCC's share in the joint venture is 50%. The project will be completed in 36 months. The stock may remain in focus in today's trade.

Hero MotoCorp (BSE Code: 500182) has sold 504181 units of two-wheelers in February, marginally up as compared with 501271 units in the corresponding month last year. The company is hopeful that this price cut will give a fillip to the industry and further boost demand of its products. The stock will remain in limelight in today's trade.

SAIL (BSE Code: 500113) sales grew by 7% in February 2014 to 1.04 million tonnes on higher off-take from domestic and export markets. The country's largest steel maker had clocked sales of 0.974 MT (million tonnes) in the same month last year. Production of sale-able steel in the reporting month also rose by seven per cent to 1.006 MT from 0.94 MT a year ago. The stock may remain in action in today's trade.

Ashok Leyland  (BSE Code: 500477) has reported a 21.2% decline in its total sales in February at 7915 units. The company had sold 10046 units during the same month of previous year. Sales of medium and heavy commercial vehicle in February declined by 20.8%, to 5576 units from 7045 units sold during the same month of previous year. Sales of light commercial vehicles in February, 2014 declined to 2339 units from 3001 units on YoY basis. The stock may witness some selling pressure in today's trade.