Index Trends And Stocks In Action For March 10, 2014

Indian Equity market which narrowly missed touching its life time high on Thursday, swiftly caught up with that landmark milestone of all time high on Friday and surged higher from there on to a new peak of 6537 before settling down at 6526 netting a ferocious gain of 125 points. Encouraging CAD data, heavy buying by foreign investors and a stronger rupee lifted the market higher. In our last write up we mentioned that Nifty has seen a breakout of downward sloping trend line and we are entering in to fresh charting territory with possible targets of 6475-6550 so this was in line with our expectation.

Generally markets have most of the time been rewarding in month of March and history also suggest that in four out of five general elections the market has seen spurt of anywhere between 5-30 per cent. Digging into the technically aspect it seems momentum will continue as long as we hold on to levels of 6180. On weekly charts Nifty has seen breakout of trend line which is formed by joining previous high. So now going forward 6560 will act as a resistance and next resistance will be around 6600. On downside major support for Nifty will be in zone of 6380-6420. 

Engineers India (BSE Code: 532178) (EIL) has won its largest ever overseas consultancy contract for a 20 million tonne oil refinery in Nigeria as it looks at markets abroad to more than double its revenue to USD 1 billion in the next 3-4 years. The state-owned firm has won a USD 139 million contract from Nigerian company Dangote Group for providing project management consultancy (PMC) and engineering, procurement and construction management (EPCM) services for a refinery and polypropylene plant. The stock may witness some buying interest in today’s trade.

The Tripura unit of Oil and Natural Gas Corporation (BSE Code: 500312) has intensified exploration to create a recoverable reserve of gas for at least 15 years. The unit supplies natural gas to 726 MW gas-fired thermal power project at Palatana in Gomati district. The stock may remain in focus in today’s trade.

The Rs 870 crore-deal involving merger of  Sterling Holiday Resorts (BSE Code: 523363) with travel firm  Thomas Cook (India) (BSE Code: 500413) has received the Competition Commission's approval. Approving the multi-structured deal, the fair trade regulator CCI said the deal is not likely to have an adverse impact on competition in the country. Both the stock may remain in limelight in today’s trade.

Promoters of  Reliance MediaWorks (BSE Code: 532399) have offered to buy back shares worth at least Rs 251 crore from public shareholders as part of plans to delist the company. Reliance Land and  Reliance Capital (BSE Code: 500111) have offered to purchase 51,579,465 shares, representing 26.70% stake in Reliance MediaWorks. The stock may remain in action in today’s trade.