Index Trends And Stocks In Action For March 06, 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. 

French drug-maker Sanofi filed patent infringement petition against Glenmark Pharmaceuticals (BSE Code: 532296) on cardiac drug Multaq, in the district court of Delaware, on three counts. According to the petition, the Indian drug maker had submitted its application to seek USFDA's approval for its generic version of the drug on January 24, 2014. Sanofi and Sanofi-Aventis US LLC filed the suit against Glenmark and Dublin-based Actavis (Watson) on February 26, 2014 in the US court seeking to prevent the duo from commercialising its ANDA product prior to the expiration of certain US patents. The stock may trade on a volatile note in today's trade.

NTPC (BSE Code: 532555) signed an agreement with State Bank of Bikaner & Jaipur (BSE Code: 501061) for a term loan of Rs 500 crore to fund expansion.  State Bank of Bikaner & Jaipur has a base rate of 10.25 per cent, according to its website. The stocks may remain in limelight in today's trade.

The board committee of Tata Power (BSE Code: 500400) is meeting on Saturday to finalise on the proposed rights issue to raise Rs 2,000 crore. It will also decide on entitlement ratio, issue price, issue size, record date, timing of the rights issue and other related matters. The stock may trade in limelight in today's trade.