Index Trends & Stocks In Action For 11th February 2013

Indian markets continued their losing streak towards the end of the week. It was for the second consecutive week that the markets have closed in the negative with the Sensex recording the lowest close of 2013, while the Nifty for the first closed below 5920 in the month of January. For the Nifty, the weekly charts are clearly indicating that the bears will have an upper hand. According to the weekly charts, the next major support for the index stands at around 5825-5853.

However, given the conditions of key momentum oscillators such as the RSI and Stochastic the index seems to be in an oversold territory on the daily and weekly charts and a pull-back either from current levels or from levels of 5825-5850 cannot be ruled out. On an intraday basis 5880 will act as crucial support level and on the higher side 5935 will act as stiff resistance.

According to media reports, Indo Rama Synthetics intends investing around Rs 4500 crore in expansion. The Company has firmed up plans to invest this money in setting up a new manufacturing facility in Tamil Nadu. This development is likely to see the stock witness an up move and remain volatile for today.

MBL Infrastructure has bagged a contract worth Rs 100 crore. The State Government of Madhya Pradesh government has earmarked this amount for developing a 47 Km stretch of road in the state. Madhya Pradesh Road Development Corporation will pay an annuity of Rs 8.15 crore every six months and MBL will have the right to collect toll from road users for the next 15 years. This project for road development will be executed through a wholly owned subsidiary of the company. On the back of this development, we expect the stock of MBL Infra to remain bullish for the day.

PVR is planning to invest Rs 150 core, over the next one year in the country to open another 75 screens. Currently PVR owns 213 screens plus operates another 138 screens of cinema, taking the total number to 351 in the country. The upcoming screens are to spread out in Tier-I and Tier II cities. According to the Company these new screens would be coming up at various places, such as Kochi ad Chandigarh. This development is likely to keep the PVR stock in the limelight for today.

According to the media reports, Amara Raja Batteries is to invest Rs 750 crore for expanding its manufacturing capacity. The first phase of expansion envisages an investment of Rs 305 crore which will eventually reap benefits in 2013-2014. We expect Amara Raja Batteries to remain in focus for today.

Siemens has bagged an order worth USD700 million for the supply and installation of 288MW of offshore wind turbines off Germany’s North sea coast. The agreement covers a long term maintenance contract for 10 years. You could expect the stock to trade with a positive bias for some time in future.

Mahindra & Mahindra is to acquire a 26 per cent stake in its defence joint venture with BAE Systems, ending their three year old partnership. Mahindra Defence Systems has a 74 per cent stake in the company while the global defence major had the remaining 26 per cent. The announcement is likely to keep the stock of M&M volatile.

Among the major companies to announce their results today are Britannia Industries, Heidelberg Cement, Hindustan Media, Jaiprakash Associates, ONGC, Punj Lloyd, Tara Jewels, Tata Power, VKS Projects, Voltas, Welspun Projects, Umang Dairies, Sahara Housing, Orient Press, Indian Hotels and Hexaware Technologies. These companies are expected to remain volatile gain direction as and according to what their numbers are.