Investment Strategy for Investors on 21st May 2014

MARKETS REMAIN CHOPPY, BANK NIFTY TAKES A MILD DIP, NIFTY ALMOST UNCHANGED; ALLOTMENT OF ECONOMIC MINISTRIES TO MARKET FRIENDLY PEOPLE MAY WITNESS AN UPTHRUST. 

IN NEAR TERM WE MAY AGAIN TEST 7500 LEVEL AS THE MODI CABINET IS SWORN IN ON MAY 26. WHILE MARKETS CAN DO ANYTHING, IT SEEMS DIFFICULT FOR THE NIFTY TO CROSS 7500 AND SUSTAIN ABOVE IT. IN THE INTERMEDIATE TERM (TWO MONTHS), MARKETS SHOULD REMAIN CHOPPY OR RANGE BOUND WHILE THE OVERALL TREND IS UP

·        Bank Nifty has seen a minor dip today and prices closed near its day low. We may see some choppy prices action here. Trend is still up and we should look for buying opportunity on every dip.

·        CNXIT hold its support at 8700 and closed above to it. Prices have seen a decline 9400 to 8700 in last 4 trading days. After such a big movement, prices tend to trade choppy. Trend is down in IT Stocks so we should avoid buying in IT Stocks.

·      TELECOM Sector has seen a big up move and now prices are trading near its resistance. Some Telecom Stocks such as BHARTIARTL and TATACOMM has seen a breakout. Traders should look for a buying opportunity in Telecom Stocks.


Corporate & Finance News

·        Reliance Jio will provide broadband internet services in 900 cities and towns using optical fibre for which it has finalised agreements with partners required for the roll-out.

·        VIP Industries today reported over three-fold increase in consolidated net profit at Rs 20.3 crore in the fourth quarter ended March 31, 2014 on the account of exceptional income.

·        HCL Technologies has bagged a deal estimated to be around $500 (around Rs 3,000 crore) from beverage giant PepsiCo for offering infrastructure management services (IMS).

·        Aditya Birla Nuvo Ltd reported 11.43% decline in consolidated net profit at Rs 176.13 crore for the quarter ended March 31, 2014

·        Dhanuka Agritech reported a 26% increase in net profit at Rs 22.46 for the fourth quarter ended March 31 on account of higher income.

·        Welspun India today reported over 83% jump in its net profit at Rs 98.66 crore for the quarter ended March 31 on the back of rising income.

·        Ballarpur Industries Ltd has informed BSE that the Company has temporarily shut down Unit Kamalapuram, situated at Township - SO, District Warangal, Andhra Pradesh, due to adverse global & Indian market conditions of Rayon Grade Pulp/Viscose Staple Fibre

·        Essar Oil Ltd’s net profit increased by five times from a year earlier in the quarter ended 31 March as it benefited from a one-time foreign exchange gain and healthy refining margins.

·        Punj Lloyd reported a net loss of Rs 382.08 crore on a consolidated basis for January-March quarter on the back of decline in income and deferment of settlement of company's claims on some overseas projects.