Index Trends And Stocks In Action For March 07, 2014

Indian Equity market saw a momentous session on Thursday, with the benchmark indices Sensex and the Nifty hitting new all time high on closing basis. The market moved higher on back of report showing a sharp drop in current account deficit in the quarter ended December, 2013. The rupee's solid up move against the U.S dollar aided sentiment to a notable extent. The Nifty closed at 6401.15 gaining 72 points. In our last we mentioned if nifty manages to sustain above 6350 we could see levels of 6415, so this was in with our expectation.

Finally the index managed to get pass above the most critical supply zone of 6335-6350. If we look at daily chart of nifty and connect the recent highs on the daily chart the one which we registered on 9th of December, 2013 followed by swing high made on 23rd January, we have got a down ward sloping trend line and that has been broken on the upside today. So this suggests that we have entered into fresh breakout. For day trading important support levels for nifty would be 6350 and next level is around 6320. On upside resistance is around 6425-6455.

Mumbai based pharmaceutical giant Cipla (BSE Code: 500087) came under the scanner of the income tax authorities for alleged tax evasion. It is reported that the investigative wing of the Mumbai income tax department has conducted extensive survey operations on the factories, units and official premises of Cipla. The probe will verify suspicions of certain non-permissible expenses. The stock may witness some selling pressure in today's trade.

State-owned ONGC (BSE Code: 500312) and Oil India (BSE Code: 533106) are likely to buy a 10% stake in Indian Oil Corporation (BSE Code: 530965) from the government at Rs 220 per share, aggregating about Rs 5300 crore. An Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram had on February 28 decided to sell the stake in IOCat a discount of 10 per cent through an off-market deal.  The stocks are likely to remain in limelight in today's trade.

Accelya Kale Solutions (BSE Code: 532268) announced that it will manage critical financial processes for Bangkok Airways, Asia's boutique airline. The scope of services includes complete book-to-cash cycle, including passenger revenue accounting, cargo revenue accounting, sales audit, card billing and miscellaneous billing. The stock may remain in focus in today's trade.

Malaysia's Maxis Communications has revived talks to sell its majority stake in Chennai-based telecom company Aircel. The Maxis is in prelimnary talks with  Idea Cellular (BSE Code: 532822) for the stake sale. Executives from both Idea and Maxis have met to discuss the deal. Currently, Aircel is present in 22 circles with a customer base of 61 million of January 2014. The company had curtailed GSM operations in five circles unprofitable due to high operating costs. The stock may remain in action in today's trade.