Index Trends and Stocks In Action for 2nd January 2013

The markets saw a blistering up move on the first day of the New Year. It was a gap up opening which ended on a positive note. The Nifty closed at 5951 touching its two-week high. On the charts it has formed a Bullish Gap up candlestick pattern yesterday, which is bullish in nature. Technically, the Nifty is in a bull phase. Going ahead, support for the Nifty stands at 5930 and 5888. On other hand, resistance stands at 5971-6000.

Hero Motocorp the country’s largest two-wheeler maker reported a flat growth of 0.25% in sales volumes as compared to the same period last year.  Sales volumes have remained flat, despite a dispatch of over five lakh two-wheelers during the month. Customers having postponed their buying in two-wheelers for the New Year were reportedly seen to be the reason for the flat sales in December. Hero Motocrop will see a downside in today’s trading.

Chennai-based IT firm Saksoft, has acquired Electronic Professionals, a US-based business intelligence and information management company through its subsidiary for an undisclosed amount. EDP would operate as a separate entity in the US. It would act as adirect subsidiary of Saksoft Inc, US. This acquisition basically will help Saksoft with an additional channel for client acquisition and account management. The stock is likely to trade in the positive following this development today.

Adani Power has requested the Coal Ministry to grant long-term coal linkage for the proposed thermal power plant at Tiroda (Maharashtra). The project is at the advanced stage of development and the first unit is expected to be commissioned shortly. We expect the stock price of Adani Power to move up today as the development if it goes through will be a positive for the company.

L&T Finance Holdings has completed the acquisition of auto finance company family Credit for Rs 120 crore. Family Credit, which was a subsidiary of Societe Generale Consumer Finance, has a presence in two-wheeler and other auto financing. This acquisition will consolidate the company's presence in the auto financing business in India. The L&T Finance stock will remain in a bullish mode for today.