Index Trends And Stocks In Action For 16th January 2013

For the second consecutive day, the Indian markets have closed in the green. Yesterday’s positive closing was on the back of better than anticipated third quarter results announced by Axis bank. Bulls after several attempts finally managed to sustain above the 6050 level. The Nifty closed at 6057, up by 0.54% making this its best closing level since January 07, 2011. Going ahead on the higher side, Nifty will face resistance at 6077 and 6100. Support for the Nifty stands at 6020 and 5990.

HCL Infosystems said it would spin off its hardware, learning and services businesses into separate units to create a leaner structure and improve operational efficiency. The Board has approved the transfer of hardware solutions business to wholly owned subsidiary HCL System Integration, learning business to its subsidiary HCL Learning and services to HCL Care. The Board has also approved the merger of HCL Infocom with HCL Infosystems. The stock is expected to remain in focus today, with a positive directional bias, following these announcements.

Oil India has announced crude oil production from its Venezuelan field, marking its first crude oil production from the company’s overseas block. Currently producing a few hundred barrels of heavy oil per day, the field is expected to achieve a target of 90000 barrels per day by the end of 2015. This is likely to result in an upward movement in the stock prices of Oil India today.

Maruti Suzuki has announced that it will increase prices of its vehicles across models by up to Rs 20000, effective January 16, in a move to offset pressure of adverse currency fluctuation. This move has been in line with the company’s announcement last month of raising prices by 1-3%. Volatility is expected to arise in the stock price of Maruti Suzuki today.

Bosch has made an entry into thermo technology and launched Bosch Thermotechnik a division which will commence operations with the manufacture of solar flag collectors at a new unit in Bangalore, according to Business Line. It has invested nearly 1.5 million euros to set up the Bangalore unit. The expected turnover resulting out of this move is expected to be Rs 21 crore. With this, the stock price of Bosch is expected to remain see some upswing today.

Among companies that announced their Q3FY13 results yesterday were Axis Bank, Essar Oil and Shalimar Paints. All these companies have posted a good set of numbers. They are expected to see heavy volumes with an upward movement today. Although announcements of Axis Bank and Shalimar Paints came in during market hours, also resulting in appreciation in stock prices, prices are expected to see an extension of gains today.

Among the major companies that are to announce their Q3FY13 results today are Automotive Stampings and Assemblies, Bajaj Auto, TTK Prestige and Yes Bank. All these are companies are expected to see volatility with the directional movement depending on how the results are.