Index Trends And Stocks In Action For July 24, 2014

Indian Equity market extended its winning run for sixth consecutive session. The Nifty index hit a new all time high on Wednesday as information Technology stocks rallied on some hectic buying in last hour of trading session. Nifty on daily chart has formed a doji candlestick pattern and this candlestick pattern signifies indecision between the bulls and bear’s. One more important point to note on daily chart is that this candlestick pattern has been formed along with double top around level of 7809. RSI is flattening and showing negative divergence. So technical indicator and candlestick pattern suggests that the momentum will diminish and we may enter a corrective phase.  For index important support stands at 7750-7760 and next support is around level of 7700. On upside 7842 will act as a stiff resistance for the index.

World's largest bulk tea company McLeod Russel India (BSE Code: 532654) mulling to diversify its business to derisk its plantation business due to uncertain weather conditions and help them grow over the next decade. Apart from diversifying into new business segments, McLeod is also planning to double its bought leaf production to 50 million kg over the next four years to maintain a stable production. The stock may trade with a positive bias in today’s trade.

BGR Energy Systems (BSE Code: 532930) has bagged contracts worth Rs 303 crore spread across a range of sectors, including power, water, and oil and gas. BGR Energy, a construction contract company in power projects, is diversifying into a range of sectors following the slowdown in the power sector. In order to mitigate the impact of sluggishness in the thermal power sector, it is in pursuit of opportunities in other sectors in India and abroad. BGR Energy has received letters of intent for two natural draught cooling towers from BHEL for their 1,330 MW Suratgarh project in Rajasthan; a contract for the supply of a 400 kV Air Insulated Switchgear Substation (AISSS) and a USD 6.7-million export order in the oil and gas sector. The stock may witness some buying activity in today’s trade.

Power utility major BHEL (BSE Code: 500103) has firmed up renewed plans for a big presence in renewable energy, especially solar energy. It wants to play a significant role in establishing ultra mega solar photovoltaic plants of 1000 MW each. The Ministry of New and Renewable Energy (MNRE) had unveiled plans to create 4000 MW of solar power by setting up 4x1000 MW solar units on the lines of thermal ultra mega power projects. The average per MW cost of solar energy is upwards of Rs 7.5 crore. The stock may remain in action in today’s trade.

State owned construction major National Buildings Construction Corporation (BSE Code: 534309) has secured work order of Rs 2,067 crore in first quarter of this fiscal, well above the targeted MoU of Rs 1,250 crore signed with the Government. The annual MoU of NBCC with the Government in respect of the order book target has been fixed at Rs 5,000 crore for the company during FY 2014-15. The stock may remain in limelight in today’s trade.