Index Trends And Stocks In Action For March 05, 2014

Indian Equity market opened on a muted note due to unrest in Ukraine; however as the day progressed investors and traders indulged into buying mode amid easing worries about the unrest in Ukraine following reports that the Russian President Putin ordered some of his troops back to base. The Nifty index ended with a gain of 76 at 6297. Banking, Metal, Capital Goods and power stocks rallied sharply. In our last write up we mentioned that buying on dips is the right way to approach in market and once we cross hurdle of 6260, Nifty is likely to surge up to 6290 so this was in line with our expectation.

The Nifty is approaching to its critical supply zone which is around 6330-6350. In past we have seen that Nifty as soon as Nifty comes around this zone we see some profit taking and Nifty retraces 100-150 points. Now going forward it's important to see whether this Nifty crosses this hurdle or again take resistance around this zone and corrects back to level of 6180-6200. For intraday important support level for Nifty is around 6260 and next support is around 6220. On upside Nifty has resistance around 6330 and next resistance is around 6350. Once Nifty manages to close above this supply zone than we will see a range expansion in Nifty and chances are Nifty will surge higher up to levels of 6450 in short term.

Ahead of the launch of its mobile services, Mukesh Ambani-owned Reliance Jio Infocomm signed an agreement with Bharti Infratel (BSE Code: 534816) to utilise the latter's tower infrastructure. The companies have signed a master services agreement and pricing would be at 'arm's length,' based on prevailing market rates. The stock may remain in focus in today's trade.

Larsen and Toubro (BSE Code: 500510) has been awarded a contract to build a new four-lane bridge across Narmada river at Zadeshwar about 90 km away from here by the National Highway Authority of India (NHAI), which will be ready within 30 months. The order is worth Rs 379 crore. This contract was awarded to the company Hindustan Construction Company (BSE Code: 500185) failed to abide by the tender condition. Larsen & Toubro may witness some buying activity while HCC may witness some selling pressure in today's trade.

GVK Power & Infrastructure (BSE Code: 532708) has commissioned its 330 MW Shrinagar hydro electric project developed on Alaknanda river in Uttarakhand. The 330 MW Hydro project is located on the Alaknanda river near Shrinagar town in Garhwal district of Uttarakhand. The hydel plant has been developed as a run of the river project and is expected to supply 12% of the energy to the Government of Uttarakhand at no charge. The balance 88 per cent power generated will go to the Uttar Pradesh Power Corporation Ltd (UPPCL) under a Power Purchase Agreement. The stock may remain in limelight in today's trade.

Finance ministry is likely to take the PSU ETF as well as the Axis Bank (BSE Code: 532215) stake sale and the Indian Oil Corporation (BSE Code: 530965) cross holding in the next two weeks. The government is offloading a 10 percent stake in Axis Bank which forms part of its SUUTI portfolio and this will be via a block deal. The PSU ETF will have about 10-12 top PSUs and these will include companies such as Coal India (BSE Code: 533278), Oil and Natural Gas Corporation (BSE Code: 500312) and IOC. The stock may witness some positive activity in today's trade.

Tata Consultancy Services (BSE Code: 532540) announced an exciting new partnership with Microsoft Business Solutions (MBS) at the annual Microsoft Dynamics Convergence Conference. Through this strategic partnership, TCS and MBS will collaborate on the development of online and on premise versions of Microsoft Dynamics CRM. TCS is one of the select group of systems integrators to be involved in this development, which is a testament to the company's technical capabilities and deep, working knowledge of Microsoft Dynamics CRM.  The stock may remain in focus in today's trade.