Index Trends And Stocks In Action For March 14, 2014

Indian Equity market ended on dismal note as traders and investors indulge in some profit taking following recent strong rally in quick time. Heavy selling in IT bellwether Infosys and Pharma major Sun Pharmaceutical’s deteriorate the condition further.   In our last write up we mentioned that nifty will move in range of 6470-6563 and in today’s trading session nifty moved in specified range. 

Nifty on daily charts has formed a doji candlestick pattern, which is a potential reversal pattern. But if we look at momentum indicators they are not hinting some major correction set up. For day trading important support for nifty is around 6470 and as long as nifty continue to trade above this support level bulls will enjoy the party. For momentum to get further strength nifty should move up above level of 6565 and if nifty sustained above this level than target of 6600 opens up. In case of any profit taking if nifty sustains below support of 6470 than it may slide up to levels of 6410. 

HP-owned IT services firm MphasiS (BSE Code: 526266) reported a 2% fall in consolidated net profit at Rs 180.6 crore for the first quarter ended January 31, 2014. The Bangalore-based firm had posted a net profit of Rs 184.4 crore in the year-ago period. Consolidated revenues for the November-January quarter of FY2013-14 rose 24.4% to Rs 1,564 crore against Rs 1,257 crore for the same quarter a year ago. The stock may witness some volatility in today’s trade.

Tata Motors (BSE Code: 500570) global sales, including Jaguar Land Rover (JLR) vehicles, declined 19.06% to 79,996 units in February from a year ago. The company had sold 98,837 units in February last year. In the passenger vehicles category, global sales last month were 50,775 units, 8.81% higher than 46,662 units in February 2013. Sales of luxury brand Jaguar Land Rover rose 9.93% to 39,011 units last month, compared with 35,485 a year earlier. Sales of commercial vehicles in February declined to 29,221 units from 52,175 units a year ago. The stock may remain in focus in today’s trade.

Indian Oil Corporation (BSE Code: 530965) is mulling setting up a Rs 30,000 crore refinery at Mundra in Gujarat as part of a plan to increase its processing capacity to 100 million tonnes. IOC has seven refineries with a total capacity of 54.2 million tonnes. The stock may witness some action in today’s trade.

GVK Power & Infrastructure (BSE Code: 532708) is negotiating with the government for refund of Rs 180 crore spent on seven deepwater exploration blocks, which were surrendered last year. The company may also take a legal recourse if the government does not heed to the claim. The stock may remain in limelight in today’s trade. 

SpiceJet (BSE Code: 500285) raised Rs 133.21 crore through issue of warrants to the promoters of the company. The company has on March 12, 2014 allotted 64,169,000 warrants, having option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10 each at a premium of Rs 10.76 to promoters of the company on preferential basis. Also, 45,000,000 warrants have been allotted to Kal Airways Private Limited and 19,169,000 warrants allotted to Kalanithi Maran. The stock may remain in focus in today’s trade.