Index Trends & Stocks In Action For 27th February 2013

Indian markets on Tuesday were knocked down sharply by bears to end near three-month lows with the Nifty ending below 5,800 at 5761, down by 1.6%. These levels have been reached for the first time since November 2012 amid weak global cues and a sell-off seen in heavy weights like Bajaj Auto, Hindalco Industries and HDFC. To add to it were no positive surprises in the Railway Budget which had the potential to boost the markets otherwise. In our last update we clearly pointed out that trapped investors and tired traders who were waiting for a big move and a short-term bullish trend are no more in an optimistic mood and have been put out-of-the-way by the bears. Tuesday morning when the first hourly candle closed below levels of 5820, bears tightened their grip and it was a one way fall. Going ahead the market has key support around 5730 and further at 5690. At the same time, resistance on higher side would come in at 5790 and 5820. Going forward events that can switch the market trend are GDP data and the Union Budget.

According to media reports, Havells India has reported that US based financial institution Janus has picked up 5.16% stake in the company. It has estimated to have spent Rs 420 crore for the stake. Havells India said that Janus Investment Funds and Janus Aspen Series have bought 64,42,728 equity shares, representing 5.16% holding of the company. These shares were purchased through open market transactions. On the back of this announcement, we expect that the scrip of Havells India to be volatile today.

Jaguar Land Rover, a Tata Motors owned company yesterday launched a luxury sedan- Jaguar XJ ultimate. The ex-showroom price for the same is Rs 1.88 crore. The XJ Ultimate is available with Jaguar's existing 5.0 litre V8 supercharged petrol engine and 3.0 litre V6 turbocharged diesel engine. The company reported that it is launching the luxury sedan with an eye to increase sales in India. Following this launch, stock prices of Tata Motors are expected to see some upward movement today. 

As per the budget, Indian Railways is planning to set up a modern signalling equipment facility at Chandigarh through the PPP route. As a result of this, the companies that will probably benefit include Kernex Microsystems, Zicom, Siemens and Kalindee Rail Nirman. On back of this announcement, we expect the stocks of these companies to remain in focus in today's trading session.

Investors should keep an eye on companies like Bosch, Castrol India, Goodricke Group, Goodyear India, Shree Ram Urban, Stellant Securities (India), Stovec Industries and NAKODA as these companies are to announce their December 2012 quarterly results today. Stocks of these companies are expected to see some volatility depending upon the numbers they post.