Index Trends And Stocks In Action For 1st August 2013

The Indian equity markets recouped from the day’s low to end on a flat note after a volatile trading session. The 50-share Nifty declined 13 points at 5742. In our last write up we mentioned the Nifty is heading towards the 5650-5670 mark in the short-term. What we saw yesterday on the Nifty was that it made a low of 5676 and bounced almost 70-80 points.

The Nifty has formed a doji candlestick pattern, which is found in a downtrend and hints at a minor bounce-back. Going ahead, on the upside, the Nifty has stiff resistance at levels of around 5760-5770. If we close above this level, we may see a small pullback to levels of 5830-5850. On the downside, 5710 is an important support level. If we breach this level, we may head to 5670 and then to 5640.

Shares of Strides Arcolab are expected to show further volatility on the back of the news that the company may have received form 483 on its manufacturing facility. There is also a talk that US FDA may have some observations in this undisclosed manufacturing facility. We have seen how the shares of Wockhardt have wiped out the market cap in the last two months and a similar kind of fear is hovering around Strides Arcolab and hence there would be some selling pressure on the stock today.

Shares of MCX and Financial Technologies may show marginal gains over the news that the cash segment turnover on MCX-SX has surged by 39%. The shares yesterday showed steep decline but the news may be welcomed by the markets.

IRB Infrastructure has decided to withdraw from the Rs 9360 crore Mumbai Trans Harbour Link project. Stock prices of IRB Infra may see some volatility today.

Balrampur Chini announced its Q1FY14 numbers in which its revenues declined to Rs 681.62 crore from Rs 691.96 crore, on a yearly basis. Its net loss however narrowed to Rs 9.77 crore from Rs 18.05 crore. Share prices are expected to see some downward pressure today.