Index Trends And Stocks In Action For January 22, 2014
Indian Equity markets opened on firm note on back of strong global cues and despite suffering a mild set back that resulted in a brief spell in negative territory but ended with modest gains. The Nifty ended at 6134 off the day's high of 6330 gaining around 9 points. In our last write up we mentioned that market will linger in tight range and 6335 will act as stiff resistance and this was in line with our expectation as market moved in tight band and retraced back after touching high of 6330. Nifty made yet another attempt to cross its roadblock of 6340-6350 but it failed to cross this hurdle. On daily chart Nifty has formed doji kind off candlestick pattern; this hints hesitant amongst the market participant. Doji candlestick formed after an up move day hints that the bulls are exhausting out at higher levels and might halt the up-move. But one major positive takeaway in today's trading session was that the Bankex which underperformed for a long time managed to close near day's high but still needs to clear levels of 11250-11260 which is a major hurdle. Intraday Nifty will face resistance around levels of 6335 and if Nifty sustain above this level next resistance is around 6360. On downside Nifty has strong support around 6290 and if Nifty breaks this level next important support is around 6240.
With rising debt, infrastructure firm IVRCL (BSE Code: 530773) has initiated Corporate Debt Restructuring (CDR) process to get its loan repayment period extended. IVRCL, which had nearly Rs 3000 crore debt, including Rs 2795 crore short-term borrowings as on September-end, has been consistently incurring losses for some time now. The stock may witness some volatility in today's trade.
The Foreign Investment Promotion Board (FIPB) will consider a proposal by HDFC Bank (BSE Code: 500180) to increase the overseas shareholding limit on February 3. The bankhas sought permission to maintain the permissible foreign holding in the bank up to 67.55% of the total paid up capital, out of which the FII sub-limit would be 49% and the balance 18.55% would be FDI. The stock may remain in limelight in today's trade.
Tata Consultancy Services (BSE Code: 532540) has created a separate business unit to focus on digital solutions. This segment could add billions of dollars to the company's revenue over the next few years. The Digital Software & Solutions Group has been designed to help customers make the transition to using emerging technologies and provide modular, industry-tailored solutions. The stock may witness some buying interest in today's trade.
Colgate Palmolive (India) (BSE Code: 500830) reported 1.6% rise in its net profit to Rs 112.83 crore for the third quarter ended December 31. The company had posted a net profit of Rs 111.05 crore during the same period of the previous fiscal. Net sales of the company rose to Rs 883.83 crore for the third quarter as against Rs 762.68 crore during the same period a year ago. The stock may witness some selling in today's trade owing to this flattish growth reported by the company.