Index Trends And Stocks In Action For August 05, 2014

Indian Equity market bounced back sharply after taking support near to its 50 days simple moving average. Today’s rally was seen despite negative cues from the US and the Asian Peers. Consumer durables index was top gainer up about 3% followed by IT, Capital Goods and Power. The broader market ended with smart gains of 1%. On Monday the bulls managed to close above its strong supply zone of 7670.

Now going forward bulls will face immediate resistance in range of 7710-7735. If bulls manage to cross this hurdle than it can be termed as that swing higher low has formed and Nifty index is inching for its set for up move.  On the downside index has strong support around 7655 and next support is around 7610. Tomorrow being event day, we expect market to trade volatile. Market consensus is that RBI will maintain status-quo.

Diversified conglomerate ITC (BSE Code: 500875) has raised the prices of select cigarette brands like Classic and Gold Flake Kings by up to Rs 10/pack in the wake of hike in excise duty on cigarettes in the Budget. Prices of select ITC Cigarette brands have been increased and new stocks are expected to hit the market shortly. The stock may trade with a positive bias in today’s trade.

India's largest realty firm DLF (BSE Code: 532868) sought shareholders' approval to raise up to Rs 5,000 crore through private placement of non-convertible debentures. DLF informed that shareholders nod has been sought through postal ballot for reducing borrowing power of the company's board of directors to Rs 30,000 crore from earlier Rs 50,000 crore. The stock may remain in action in today’s trade.

Jet Airways (BSE Code: 532617) will add two flights each between Bangalore-Kochi and Bangalore-Chennai and fly a bigger Boeing 737 aircraft instead of 62-68 seater turboprop ATR plane on Bangalore-Goa route from August 11. All these routes are being served by AirAsia and the addition of capacity will enable the airline to compete in the market. The airline announced additional flights in a notification to travel agents. The stock may trade remain in limelight in today’s trade.