Index Trends & Stocks In Action For 13th February 2013

Indian markets on Tuesday ended their eight day losing streak to close at higher levels. They shrugged off negative IIP and inflation numbers to take note of positive developments on other fronts including the finalization of norms for issuing new banking licenses. The Nifty for the past two trading sessions was stuck around the lower-end of the Bollinger Band for a major part but finally it bounced back from there and went on to close above 5900 level today. it ended up 0.42% at 5923.Today’s candle managed to engulf yesterday’s candle and closed above the previous days’ high. This suggests a short term reversal pattern. Also the fact that we witnessed a higher volume as compared to the previous trading sessions gives a confirmation of the above. Going ahead 5940 will act as hurdle for the nifty and the second hurdle will come at around 5965. Support for the Nifty stands at 5900-5880.

Nielsen Holdings is reported to have increased the contract size that it has with TCS to USD 2.5 billion. This is 1.5 times that what was originally slated to be. There are two ways to look at this news. One, the IT industry is turning around for the better and two, TCS is the stock to look out for today. the development will surely keep it in focus.

News reports of expansion and capex have always led to stocks garnering a better mindshare of the market. CESC a flagship of the Sanjiv Goenka group is reportedly gearing up to invest around Rs 4000 crore in setting up a 600 MW thermal power plant in UP. Power companies haven’t been so much in demand on the bourses for quite some time now. However, this development is likely to put the CESC stock in the limelight for today.

Here is a smaller IT Company which you could look at for today. Zensar Technologies is reported to have bagged a Rs 270 crore deal from a US based Health Insurance Company. This is said to be one of the largest deals that the company has won. The stock could see a strong positive move following this development.

Two stocks from the capital goods sector to watch out for today are Bharat Forge and Alstom. Alstom Bharat Forge Power is reported to have received an order worth Rs 2251 crore under which the venture will supply and commission three coal-fired, supercritical, turbine generator islands with a capacity to generate around 660 MW of power for NTPC.