Index Trends & Stocks In Action For 5th March 2013

The Indian markets on Monday opened gap down on the back of weak global cues and traded within a tight range of 30 points. The Nifty closed at 5699, down by 0.37%. Going ahead, the Nifty has an immediate hurdle at around 5730-5740. If we see any movement above these levels and if the Nifty is able to sustain above them, we can assume that we have found a short term bottom. Support for Nifty stands at around 5660-5670. If the Nifty drifts below these levels, it can touch levels of 5635-5645 which is also 200-day EMA for Nifty. We feel that market will be range-bound in coming trading sessions.

Hindustan Copper has decided to invest around Rs 533 crore in order to increase its production capacity at its Khetri Copper Complex (KCC) in the next five years. It has decided to, using modern equipment and technology increase capacity from 1 million tonnes to 3.1 million tonnes. On back of this announcement, we expect the stock of Hindustan Copper to react positively for the day.

Karnataka Bank has signed a MoU with Ashok Leyland for providing easy finance to vehicle buyers, according to media reports. According to the agreement, the bank will be providing finance to customers who intend to buy commercial vehicles from Ashok Leyland. On back of this news, we expect the stock of Karnataka Bank as well as Ashok Leyland to remain in focus for today.

According to media reports, BS Ltd through its subsidiary BE Enviro Solutions has announced the acquisition of 51% stake in Skywater India. Although it has not yet revealed any other information with regards to the acquisition, we expect volatility in the stock prices of BS Limited and expect some upward movement today.

SAIL announced that it is will increase prices for its products by up to Rs 500 per tonne for the month of March. It reported that the price hike has been implemented for all the products to align prices with the international market and due to a rise in coal prices. According to industry sources, other steel companies may also go for price raises soon. Following this announcement, the stock price of SAIL is likely to see increased volatility in today's trading session.