Index Trends And Stocks In Action For April 01, 2014

Indian Equity market scaled yet another peak in early trades on Monday as trader continue buying; as the day progressed the bulls got a setback as profit taking was witness and it dragged index in negative. Despite suffering a setback market bounced back and closed at new closing high. Nifty ended at 6704 with marginal gains of 8 points. In our last write up we mentioned 6720-6755 is a strong supply zone so this was in line with our expectation as Nifty faced some supply around 6730 in today’s trading session. 

Now all eyes are on the Reserve Bank of India’s monetary policy review, this will give fresh cues for market in short term. Going forward the range between 6722 and 6750 is a strong supply zone, if bulls manage to cross this level than next level to watch out for is 6800. On the downside in case of any negative news or profit taking the range between 6570-6610 would be the most significant support area for the bulls. 

Reliance Communications (BSE Code: 532712) launched two global roaming packs -- Unique UK and Fabulous Five -- Monday for its postpaid GSM customers. The `Unique UK' roaming plan offers 96% discount on data charges and upto 82% on voice calls at a monthly rental of Rs 849, while `Fabulous Five' offers customers discounted tariffs upto 92% on voice calls in 42 destinations across five continents, including North America, Europe, Asia, Australia and Africa. The stock may witness some action in today’s trade.

State-owned IDBI Bank's (BSE Code: 500116) credit quality may worsen due to its high exposure to stressed corporate loans along with weak profitability, said global rating company - Moody's Investors Service. "The negative outlook on IDBI's standalone bank financial strength rating reflects our view of the potential for further deterioration in the asset quality of the bank's corporate loans," the rating agency said in a media release. The stock may witness some selling in today’s trade. 

Micro irrigation company Jain Irrigation Systems (BSE Code: 500219) is looking to sell a stake in its food-processing business to private equity funds to raise up to Rs 610 crore as it seeks to cut debt and boost growth. The Jalgaon-based company, which began as a kerosene trader in 1963 before diversifying into irrigation products, plans to divest 30-35% in the 10-year-old food-processing unit to strategic investors for USD 80-100 million. The stock may remain in limelight in today’s trade.

State-run NTPC (BSE Code: 532555) is preparing to start commercial operations at three new solar power plants, doubling its capacity from solar energy sources. NTPC has vowed to raise the amount of energy it generates from renewable resources as it aims to diversify away from conventional fuels including coal because of insufficient domestic supplies, which have forced it to buy costly imports. The stock may remain in focus in today’s trade.