Index Trends And Stocks In Action For April 25, 2014

Indian Equity market started on a firm note but traded in a range bound manner for the rest of the day. The Nifty index ended higher by 25 points at 6841.In our last write up we mentioned if Nifty manages to get past 6840 its likely to touch levels of 6860 and this was in line with our expectation as soon as Nifty crossed 6840 it made high of around 6861. Going forward next resistance level for Nifty is around 6865 and next resistance is around levels of 6890. On downside 6810-6820 is important support zone for Nifty. If Nifty trades below this support zone then it’s likely to slide down up to levels of 6770.

Tata group hospitality major, Indian Hotels Company (BSE Code: 500850), has sought market regulator SEBI's approval to raise Rs 1,000 crore through issue of debentures on rights basis. As per the draft offer document filed by IHCL with SEBI, the company is planning to issue 'compulsorily convertible debentures (CCDs)' for an amount "not exceeding Rs 1,000 crore on a rights basis to the eligible equity shareholders of the company. The stock may remain in limelight in today’s trade.

State-owned iron ore miner NMDC (BSE Code: 526371) is set to form a joint venture agreement with Mosi Oa Tnuya Development Company (MOTDC), a Zimbabwe government-owned firm, for development of exploration assets. The move would help ensure augmentation of NMDC's mineral reserves and globalisation of its operations. The stock may remain in focus in today’s trade.

Close on heels of the Supreme Court (SC) lifting the 18-month ban on mining in Goa, Sesa Sterlite (BSE Code: 500295), one of the state's largest miners has said it expects to resume mining soon and ramp up production in post-monsoon months to almost 90% of its annual capacity in the current year. However, the company realises much of its plan hinges on how effectively the state government is able to operationalise Monday's SC judgement which also said all mining leases in Goa, including those of Sesa Sterlite, have expired in 2007 and hence mining operations cannot be carried out until renewal /execution of the lease deeds by the state government. The stock will remain in focus in today’s trade.

Infotech Enterprises (BSE Code: 532175), reported a 28.8% increase in net profit at Rs 69.83 crore for the fourth quarter ended March 2014, as compared with Rs 54.21 crore in the corresponding quarter of the previous year. Revenues for the quarter under review stood at Rs 594.8 crore, as against Rs 464.4 crore, reflecting a growth of 28%.  The stock may witness buying activity in today’s session backed by better quarterly numbers.