Index Trends And Stocks In Action For March 18, 2014

Indian Equity market ended with marginal gains as investors and traders indulge in some hectic buying in the closing minutes. The Nifty closed at 6504 gaining 11 points. In our last write up we mentioned we mentioned 6410-66410-6420 is good support for index and nifty made low of 6433 and bounced back sharply to end above 6500. It seems nifty is developing some strong base in range of 6400 on downside and 6565 on upside. Fresh momentum is only expected if index manages to sustain above 6565 levels. For day trading important support for index on downside is 6470 and next support is around 6420. On upside nifty has strong resistance around levels of 6540 and next resistance is around 6565.

Country's largest carmaker Maruti Suzuki India (BSE Code: 532500) plans to invest around Rs 4,000 crore in the next fiscal on various activities such as the introduction of new models, marketing and R&D. The company's board, approved the investment for the next fiscal besides coming out with new proposals for the proposed manufacturing facility in Gujarat. The stock is likely to remain in focus in today’s trade. 

A 22-member lenders' consortium led by ICICI Bank (BSE Code: 532174) has failed to agree on a proposal from ABG Shipyard (BSE Code: 532682) to recast its Rs 11,500-crore loan, a majority of which turned into dud assets on their books. The management indicated that there was no consensus on the terms of the loan restructuring proposal from ABG Shipyard at the corporate debt restructuring cell meeting held last Friday. The banks are not sure about the promoter's ability to bring in fresh equity contribution of around Rs 300 crore. The stock may witness some selling pressure in today’s trade.

GlaxoSmithKline Consumer Healthcare (BSE Code: 500676) is working towards increasing product offerings under its Horlicks brand and strengthen presence in north and west India to enhance its market position. The company is looking at introducing brand extensions of Horlicks, which brings in revenues in the range of Rs 4,000- 5,000 crore annually in the health food drinks segment, alongwith Boost.  The stock may remain in limelight in today’s trade.

Indian Oil Corporation (BSE Code: 530965) plans to invest Rs 7,650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odisha in the next 3-4 years. The company wants to use propylene from cracked LPG and ethylene from refinery offgas to produce plastic that is used in manufacturing furniture, disposable cups and trays, printed packaging material, plain and transparent films, currency notes, food packets and pressure-sensitive tapes. The stock may remain in focus in today’s trade.