Index Trends And Stocks In Action February 19, 2015

The Indian markets extended its rally for the sixth straight day on back of buying in IT, FMCG and Capital good stocks. In today’s session Budget frenzy stocks were in limelight like BEL, TWL, Kalindee etc. On daily chart nifty has formed a bullish candlestick were open and low are similar, along with average volumes. This is positive for index. One more positive point is that Nifty has continued its sequence of higher top higher bottom on daily chart. Now going forward index has resistance in zone of 8890-8930, once index clear this zone expect probe of higher level. On downside 8830 will act as a crucial support.

Reserve Bank of India (RBI) has permitted banks to resume lending against gold to jewellers. The RBI has also lifted the ban on imports of gold coins and medallions. Earlier, banks used to get gold on loan based on letters of credit along with payment of interest. However, on August 14, 2013, the RBI issued a circular stating supply of gold in any form to domestic users, other than against full payment upfront, will not be permitted. The companies such as Titan Company (BSE Code: 500114), Tribhovandas Bhimji Zaveri (BSE Code: 534369), PC Jeweller (BSE Code: 534809), etc will be benefitted by this move.

As per the government sources, the cash-strapped SpiceJet (BSE Code: 500285) is yet to receive any funds under its revival plan from new investors led by former promoter Ajay Singh. As per the revival plan submitted to and cleared by the ministry, SpiceJet was to receive two tranches of fresh capital of Rs 100 crore and Rs 400 crore on January 25 and February 15 respectively from new investors.

Berger Paints India (BSE Code: 509480) is planning to set up an industrial coatings plant at Stavropol, an industrial area in the Russian Federation housing several automobile and manufacturing businesses. The company has signed a memorandum of understanding with the Stavropol regional government in this regard. The company has received six hectares of land at a “very favourable price” and production is expected to start in 12 to 15 months.