Index Trends And Stocks In Action For March 12, 2014

Indian Equity market opened shaky but slightly positive start the Nifty edge higher and went to reclaim new high but soon the index retraced and kept sliding as the session progressed, due to heavy selling in the metal space. The Nifty closed at 6511 recording a loss of 25 points. In our last write up we mentioned that the market may take a breather and see some consolidation and this was in line with our expectation. On daily chart Nifty has formed a double top along with a bearish candlestick, so this suggests the bulls might take breather for some time now. Now going forward as long as Nifty trades holds levels of 6470-6480 there is no worry for the bulls. Only if Nifty starts trading below levels of 6470-6480 we could see weakness up to levels of 6430-6410. On upside 6570 will act resistance any sustained move above this level will take Nifty up to levels of 6620.

The management of Bharat Forge (BSE Code: 500493) has indicated that an improving performance in the US and European truck markets is expected to provide a boost to the fourth quarter earnings of the company. Bharat Forge derives over 60 percent of its revenues from the EU and US markets. The stock may remain in focus in today's trade.

Mid-size information technology services company Mindtree (BSE Code: 532819) is providing application support and evolutionary maintenance services to air transport communications and IT solutions firm SITA for the latter's new strategic finance system (SFS) platform. SITA's SFS is based on Oracle's eBusiness Suite, and enables a central finance shared function for all receivables and payables activities across the company's global network of suppliers, airlines and airports. The stock may remain in limelight in today's trade.

Even as Maruti Suzuki India (BSE Code: 532500) plans to push ahead with the controversial Gujarat plant proposal, mutual fund houses have decided not to go down without a fight. The funds have upped their ante against Maruti by writing another letter to the Japanese carmaker. The second letter follows an 'unsatisfactory response' by Maruti to the initial letter sent jointly by top fund houses. The stock may witness volatile trades in today's session.

ONGC's (BSE Code: 500312) giant gas field in Mozambique holds 45 to 70 trillion cubic feet (tcf) of recoverable reserves, 28% more than the minimum estimated resources when it invested USD 4.12 billion. ONGC Videsh, the overseas arm of state-owned ONGC, bought a 16% stake in the offshore Rovuma Area 1 over the past one year. Oil India (BSE Code: 533106) has a 4% stake and a unit of BPCL (BSE Code: 500547) owns 10% in the block. The stocks may remain in action in today's trade.

State-owned iron ore miner NMDC's (BSE Code: 526371) sales rose 17 per cent to 27.43 million tonnes in the first 11 months of the current financial year on higher demand from steel makers. The country's largest producer of the key steel-making input had sold 23.43 million tonnes of iron ore in the same period of the previous financial year. The stock may witness some investors' interest in today's trade.