Index Trends And Stocks In Action For July 22, 2014

Indian Equity market extended its winning streak to fifth straight day. After a gap up opening, market turned volatile and as the day progressed it pared most of the gains. Sentiment took a hit after HDFC Bank announced quarterly results which were marginally disappointing. On other hand Reliance industries ended the day on strong note gaining 2% after the heavyweight reported better than expected quarterly profit in its first quarter. Nifty failed to cross its hurdle of 7735 on upside and now we expect the index to consolidate in a range of 7640-7735. Break below or above this level will give a fresh trending move. For day trading important support level for index stands at 7670 and next support at 7640. On upside resistance is around 7735 and next resistance at 7770.

Country’s largest carmaker Maruti Suzuki India 532500) continues its dominance on the Indian roads with its four models, led by entry level small car Alto heading the top ten best sellers list in April-June quarter this fiscal. According to the SIAM data, the company’s Dzire, Swift and WagonR were the second, third and fourth biggest selling models in the quarter. Rival Hyundai’s Grand i10 is the fifth largest selling model in India during the period under review followed by Honda Cars India’s sedan City at the sixth position. Maruti Suzuki India’s Alto sold 64,573 units in the April-June quarter this fiscal as compared to 56,335 units sold in the same period of previous fiscal. It is followed by compact sedan Dzire, with 50,951 units sold during the quarter. The company had sold 49,259 units of the sedan in the same period of previous fiscal. The stock may remain in action in today’s trade.

Cement roofing and green building products maker HIL (BSE Code: 509675) clocked a 174% increase in its net profit for the quarter ended June 30 at Rs 31.32 crore, as compared to the corresponding period of last fiscal. During the quarter, its total revenue was Rs 360.57 crore, up by 33% from the year-ago period. As per the management this sort of growth can be attributed to focussed and innovative marketing activities and creating a new product segment. The stock may trade with a positive bias in today’s trade.

Public sector oil refiners IOC (BSE Code: 530965), BPCL (BSE Code: 500547) and HPCL (BSE Code: 500104) will jack up their refining capacity by 37% to 185.3 million tonnes by 2016-17 by expanding existing units and commissioning a new plant at Paradip in Odisha. State refiners currently own 19 refineries with a total capacity of 135.066 million tonnes. IOC is the market leader with 54.2 million tonnes capacity at its seven refineries. It also controls Chennai Petroleum Corporation (BSE Code: 500110) that operates 11.5 million tonnes of capacity. The OMC stock may remain in limelight in today’s trade.

Reliance Industries (BSE Code: 500325) and its partner BP have surrendered one more oil and gas block, reducing their tally to 5 from 21 exploration acreage they held three years back. RIL had in February 2011 announced a "transformational" deal when UK's BP picked up 30 per cent stake in its 23 oil and gas blocks. However in August that year, the government allowed them to form a partnership in only 21 blocks. The stock may witness volatile trades in today’s session.