Index Trends & Stocks In Action For 26th February 2013.

Indian markets on Monday remained largely volatile, directionless and puzzling for traders. What is the market trying to convey? Trapped investors and tired traders who were waiting for big move from lower levels and the short term bulls are selling. As we mentioned in our last write the market is in a short term downtrend. A reversal in the trend can only occur if we sustain above the 5970 level in the Nifty. The Index had yet another close near levels of 5850 levels. Well, this is almost the third consecutive close in the same trading range and suggests that the bulls are tired pushing the market up. Going ahead, the key level to watch out for the Nifty is 5819, which is a strong support for it. On higher side, a resistance will come in at 5880 and 5920 levels. Traders and market participants will take cues from the Rail Budget today.

According to media reports, Hindustan Foods has entered into an agreement with Pepsico India wherein it will produce for Pepsico, its various products including the Kurkure brand. The manufacturing will be carried out by HFL at its plant at Ponda in Goa and all the product will be sold under the Pepsico brand. The financial details of the agreement are yet to come out. The stock is expected to remain in action for a better part of today’s trading following this development.  

Being ahead of time is a sign of a winner. In a similar development, PVR has announced its first 'NFC enabled PVR wallet for the BlackBerry 10 platform. The app developed by the Company will enable users to pay for movie tickets and refreshments with just a tap without having to shell out paper money. Users can use this facility of mobile payment in 15 PVR cinemas located in cities like Delhi, Chennai, Mumbai, Chandigarh, Pune, Hyderabad and Bengaluru. We expect the PVR stock to remain in focus in today's trading session following this development.

According to media reports, State Bank of India (SBI) has fixed its issue price at Rs 2312.78 per share for the preferential allotment it intends to do in favour of the government. This includes Rs 10 for the Face Value of the share the balance, a premium. The government will effectively pump in Rs 3004 crore into SBI through this issue. The SBI stock will in all probability remain quite in focus for today following this development.

Cairn India has has commenced the exploration drilling programme in the Rajasthan block. This drilling will help the joint venture between the company and ONGC to realise the basin production potential of 300000 barrels of oil per day from the Rajasthan block of the company. On back of this announcement, the Cairn India stock is expected to remain in action today and will trade with a positive bias.

Claris Lifesciences has reported that the company has received approval for two of its Abbreviated New Drug Applications (ANDAs) for Ondensetron injection in the US. The company plans to launch this injection in two variants of 2 mg/ml in 2 ml single dosage vials and 20 ml multi dosage vials. It currently has nine ANDAs approved in its name across four modules. This information is likely to keep Claris Lifesciences stock well in focus and lend a positive bias to it today.

Two major stocks that are to be watched for the day are Ranbaxy Laboratories and Bata India. These two companies are to announce their December 2012 quarter results during the day. One may see volatility in these two scrips depending upon the numbers they post.