Index Trends And Stocks In Action October 20, 2014

The Indian market managed to stage a comeback on Friday amid gains in banking, capital goods and power stocks.  On other hand the IT and Telecom stocks ended with losses. Nifty on daily chart has bounced from crucial support of 7710-7730 which is 38.2% retracement. Now going forward 7660-7700 will act as a strong support for index as 7666 is 100 EMA support and 7710 is 38.2% retracement. On upside index needs to clear level of 7840 and if nifty manages to does this it will create panic among bear’s and it will trigger short covering. This short covering will help index to touch levels of 7880.

Repco Home Finance (BSE Code: 535322) has been allowed to raise its foreign shareholding to 49%, after getting approval from the Reserve Bank. The stock may remain in focus in today’s trade.

CBI has been registered against Jindal Stripes, Jindal Steel and Power (BSE Code: 523307) and unknown public officials for alleged criminal conspiracy and cheating under the Indian Penal Code and provisions of the Prevention of Corruption Act. The stock may trade with a negative bias in today’s trade.

Tata Motors’ (BSE Code: 500570) owned Jaguar Land Rover (JLR) is working on an ambitious plan to set up a factory in the U.S., in a first for a British carmaker in the world’s second-biggest automobile market. Selling directly into the U.S. would allow JLR to avoid high import tariffs and smooth the impact of fluctuating currency rates. It has also signed a deal for a new factory in Brazil and is exploring three possible locations in Wales for a new logistics hub, though it is also considering a site in the Midlands. The stock may remain in focus in today’s trade.