Index Trends & Stocks In Action For 22nd February 2013

Indian markets on Thursday witnessed intense selling pressure amid weak global cues. After a long time we saw such a strong move on an intraday basis. The Nifty touched a one month low and formed a bearish gap-down candlestick pattern. Going ahead, 5820 will be an important support level on the downside as this was the breakout point from where we rallied more than 300 points in the Nifty and registered a new high. If this important level is breached, on the downside, we could slip down to levels of 5770 and 5740. On the higher side 5880 will be the first resistance and 5910 will be the second resistance.

Elecon Engineering has bagged two orders of Rs 183 crore and Rs 14.42 crore. The order of Rs 183 crore is from Nagarjuna Construction Company (NCC) for commissioning of a coal handling pipe conveyor system and that of RS 14.42 crore is from Monnet Ispat & Engery for the supply of stacker reclaimers. This is likely to result into some upward movement in the stock prices of Elecon today.

Pennar Industries has bagged an order of Rs 50 crore. The contract is for pre-engineered buildings in Maharashtra, Rajasthan and Karnataka. The company is engaged in the production and marketing of specialised and engineered steel solutions. The order bagging is likely to result in upward movement in the stock prices of Pennar Industries today.

TPG capital, a US private equity firm has offloaded a 10% stake in Shriram Transport Finance for Rs 1620 crore. The firm sold 2.26 crores shares in all amounting to about 10% of the firm’s equity. It sold these shares at an average price of Rs 715 per share. This is likely to result in volatility with a downward bias in the stock prices of Shriram Transport Finance.

Tata Chemicals is going through a rough patch at its Uttar Pradesh unit due to weak demand. The production facility which has a total capacity of 1.3 lakh million tonnes has been operating at half of its installed capacity because of the lack of demand. Downward movement is likely in the stock prices of Tata Chemicals today.