Index Trends & Stocks In Action for 25th February 2013

After having reached a high of 5971 on the Nifty, which also happens to be a major roadblock for the Bulls, the markets changed track in the latter half of week. This was primarily on account of the selling pressure in Banking, Metals and FMGC. The Nifty closed at 5850, down by 0.03%. This week is important with the Budget, GDP data and the F&O expiry due simultaneously.  We expect huge intraday volatility in the Nifty where the short term trend for it remains negative. The trend will reverse if the index convincingly closes above levels of 5970. Going ahead, an important level to watch out is 5819, as this is the support level defined by the Bollinger Band and also the 50-day EMA. If the index breaks below 5819, one may see some selling pressure. On the upside, the Nifty could face resistance at around levels of 5880 and 5920.

According to media reports, SAIL intends investing Rs 72000 crore to increase its overall capacity from 13.82 million tonnes to 23.46 million tones. At the same time, the company will also focus on its iron ore production. Rs 10000 crore of these funds will go towards the development of the mines it owns. This news flow is likely to keep the stock of SAIL in action today.

The Goodricke Group is planning to enhance its market share in the packet tea segment. The Company is planning to sell around 10 million kg of packet tea in 2014 against 8 million kg of tea that it had sold last year.  It has already begun carrying out massive branding exercises for the same purpose. The company is also planning to introduce a new brand of Darjeeling tea which will basically target international markets. On the back of this development, we expect the stock of Goodricke Group to remain in focus for today.

According to media reports, Titagarh Wagons has decided to expand the scope of its joint venture with the Chicago-headquartered FreightCar America, Inc (FCA). Overall Freight car has a 51 per cent stake in the venture. With the Railway budget due soon, this piece of information is likely to keep the Titagarh Wagons stock much in action from today.

India Infrastructure Finance Company Ltd (IIFCL) is coming up with its second tranche of public issue of tax free bonds. The Company is looking at collecting around Rs 6300 crore through this issue. The issue will close on March 15. In the first tranche which opened on December 26, 2012 and closed on January 11, 2013 the company had mobilised up to  Rs 2884 crore. It has so far mobilised Rs 785 crore through private placements too. On this development, we expect the stock of IIFCL to remain in the limelight today.