Activity in the shares of Gujarat-based companies will rise further next week with results of Lok Sabha elections being scheduled for Friday and exit polls for Monday. Stocks of Torrent Power, Adani Enterpirses, Adani Power and Adani Port, Gujarat State Petronet and Arvind Ltd have surged sharply in the last few months in anticipation of a Narendra Modi-led Government coming to power. However, sentiment will turn weak for them, if their expectations are belied.

Falling rubber prices may drive tyre stocks

Shares of tyre stocks such as MRF, Ceat, JK Tyre and Apollo Tyres will remain in focus as global rubber prices tumbled to their weakest in more than five years. As the world’s top producer Thailand plans to clear the stocks it had purchased from farmers to support prices, pressure ratcheted up in an already depressed market. For tyre companies, rubber accounts for about 50 per cent in volume terms and about 60 per cent in terms of total raw material costs.

Key resistance ahead for Dena Bank

Dena Bank is testing a key long-term resistance at ₹65, from which it had reversed downwards in November 2013 and January 2014. The company is scheduled to announce its fourth quarter and fiscal 2014 results on Saturday. Strong numbers from the company can take Dena Bank northwards to ₹70 or ₹73 in the short-term. However, any disappointment on the results front can drag the stock to ₹60 or even to ₹55, which is a significant support level.

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