Index Trends & Stocks In Action For 19th February 2013

The Indian markets on Monday saw some consolidation. The Nifty ended the day with marginal gains of 0.18% at 5898. After analyzing the daily charts of the Nifty, we could see that there is a formation of head and shoulder pattern wherein the neckline of pattern stands at levels of 5810-5820. What was seen in yesterday’s trading session was that the market moved on both sides and traded in a narrow range. But at the end of the day, the Nifty ended above the support of 5880 and below the resistance of 5925. This suggests that the market is taking out weak players ahead of the major event of the Union Budget. Going ahead we expect market to be in range of 5880-5970 in the coming trading sessions. Breaking of this range will lead to further trend with momentum in the market.

According to the media reports, Unilever has announced that the company will be investing USD 50 million to set up its first Asian aerosol deodorant manufacturing facility in Khamgaon in Maharashtra. The investment in India by the company is a part of broader expansion plans which would eventually help the company to achieve its ambition to double its business in India. Investment in Khamgaon will be phased over three years and production capacity will be gradually scaled up. On the back of this announcement, we expect the stock of Hindustan Unilever to see some upward movement today. 

ABG International yesterday raised its holding in ABG Shipyard by taking up an additional 2.45% stake for Rs 50 crore. ABG International has bought 12.50 lakh shares in ABG Shipyard through open market transactions. For the quarter ending December 2012, ABG International held 3.12 crore shares or 61.29% stake in ABG Shipyard. With the shoring up of stake, we expect ABG Shipyard to see volatility with an upward bias for the day.

IT service provider, Wipro yesterday reported that company has bagged a 10 year contract from Mumbai International Airport (MIAL) for providing IT services for the new integrated terminal T2. According to company, this partnership will significantly enhance customer experience and satisfaction through the use of IT.  MIAL is currently implementing a master plan for the same. On back of this development, we expect the stock of Wipro to see some positive movement during the day.

According to reports, Trent has decided to buy TVS Shriram Growth Fund’s stake in Landmark for an overall consideration of around Rs 84 crore. On the other hand, for future prospects of the company, it has also retained an option to invest with a minority stake in its subsidiary Westland. On the back of the development from the company’s side, we expect the scrip of Trent to remain in limelight in today's trading session.

During the day investors should keep watch on the stocks like GlaxoSmithKline Pharmaceuticals, Thomas Cook and Midvalley Entertainment as these companies are to announce their December quarter results today. These stocks may have volatility in its stock prices depending upon the numbers they post.