Index Trends And Stocks In Action For July 31, 2014

Indian Equity market made a strong comeback as indices snapped a two day losing streak. After opening with a negative bias, indices slipped sharply on back of profit booking in heavy weights like LT and Reliance. However a late recovery in Pharma, Banking and Realty stocks saw the Nifty once again nearing physiological level of 7800. In today’s trading session Nifty managed to hold on to support of 7680 and formed a bullish reversal candlestick pattern on daily chart.

The momentum oscillator like RSI is showing strength and has managed to close above 60 odd levels; this is positive signal for the index. Now going forward Nifty has hurdle around levels of 7820 and if Nifty manage to sustain above this level next level to watch out is around 7850. On the downside, the support between 7760-7735 would be the first strong support to work with. Tomorrow being expiry day for July series, we may see some volatile moves on index.

SAIL (BSE Code: 500113) is likely to invest around Rs 1.5 lakh crore to raise its hot metal making capacity to 50 million tonnes per annum (mtpa) from 23 mtpa, planned under ongoing modernisation and expansion by 2025. The stock may remain in limelight in today’s trade.

Telecom major Bharti Airtel (BSE Code: 532454) indicated that it may cut down on discounts it offers on mobile call rates to push revenue from voice services. The first quarter has witnessed a historic trend of softening volumes with respect to voice call segment, the management indicated in the company's earnings call. The stock may trade with a positive bias in today’s trade.

Country's largest power producer NTPC (BSE Code: 532555) has sought shareholders' nod for raising up to Rs 13,000 crore through issue of securities. The proceeds would be mainly used for capital expenditure as the company is under a rapid capacity expansion mode. The stock may remain in focus in today’s trade.

Siemens (BSE Code: 500550) has bagged a contract worth Rs 411 crore from Power Grid Corporation (BSE Code: 532898) for setting up three Static Var Compensators (SVCs), each in Punjab, Rajasthan and Jammu & Kashmir. The project will be executed on turnkey basis and the scope of the work includes design, engineering, commissioning and installation of SVCs for three of PGCIL's substations in Ludhiana (Punjab), Kankroli in Rajasthan and New Wangpoh in Jammu & Kashmir. Siemens may witness some buying activity in today’s trade.