Index Trends & Stocks In Action For 22nd January 2013

On Monday, the Indian markets opened gap up on the back of strong Q3 number posted by Reliance Industries and the index touched its fresh 52 week high. Thereafter the market was trading in a narrow band. The Nifty ended the day on a positive note at 6082, up by 0.30%. Going ahead market will face resistance at levels of 6090-6125. At the same time, support for the Nifty stands at 6050 and 6020.

Engineering company Tecpro Systems has bagged an order worth Rs 139.8 crore from West Bengal Power Development Corporation (WPDC) for a turnkey ash handling plant at Sargardighi thermal power project. WBPDC is carrying out a 2x500 MW extension project at Sargardighi in Murshidabad district. We expect the stock of Tecpro Systems to react positively to this news today.

Zensar Technologies announced its Q3FY13 results post market hours yesterday. It announced a mixed result. Although there was a sequential decline of 2.33% in the revenues of Zensar, there was a healthy increase of 51.38% in the net profit. At the same time, the order book and inflow remained strong. The management also seemed optimistic about the future outlook and expected a growth in the topline of 14-15% in FY14. This is likely to result in high amounts of volatility in the stock prices of Zensar today.

Asian Paints announced its Q3FY13 results. The numbers were robust and will show a positive trend in trading today. Revenues increased by 18.93% YoY. Margins saw improvement along with a growth in the topline. The EBITDA margin and net profit margin grew by 94 basis points and 91 basis points as compared to the corresponding quarter in the previous year. Stock prices of Asian Paints are likely to see hefty upward movement today.

ITC said yesterday that it will invest Rs 1000 crore in food and consumer products in the next two-three years. It is planning to build an integrated food and consumer goods facility at its 39 acres land parcel at Panchla in Howrah district that it got hold of last week. It also has a parcel of 18 acres at Uluberia in Howrah district where a similar project would commence. This is likely to result in some upward movement in the stock prices of ITC today.

Among the companies that are expected to announce their Q3FY13 results today are Bank of Maharashtra, Hindustan Unilever, Polaris Financial Technologies, Kotak Mahindra Bank and Kansai Nerolac. Stock prices of these stocks are expected to remain volatile ahead of the announcement. Post announcement they are expected to be directionally strong with the trend depending on the result they announce.