Index Trends & Stocks In Action for 8th March 2013

The Indian markets opened negative on Thursday and moved in a tight range till noon. However, post noon, the market saw blistering performance of the bulls and went on to touch its two week high. The Nifty closed at 5865 with gains of 0.77%. Yesterday we had mentioned that an immediate hurdle for the Nifty comes at 5830-5840 and look at the strong movement the Nifty witnessed once it crossed 5830, bursting out to hit its next resistance of 5880 in no time at all. As we see from the weekly chart of Nifty, this week’s candle has completely engulfed the previous week’s candle. This is a positive sign for the market, but the only concern is volume, which are still on the lower side of the pull back candle by a significant margin.  On an intraday basis, the Nifty will face immediate resistance at levels of 5880-5890. If that is cleared, the Nifty may touch levels of 5920-5950. Support for the Nifty will come in at 5830.

The OFS of RCF starts today. The base price for selling government’s 12.5% stake has been fixed at Rs 45 per share. This is likely to garner a minimum amount of Rs 310 crore. The stock is likely to remain volatile today due to the OFS.

The strike at Mahindra & Mahindra’s (M&M) Nashik plant has been called off. The strike that was in effect since Monday, resulted in a loss in production of at least 650 vehicles. However, the company has clarified that it has adequate inventory, suggested media reports. The management and the workers are expected to finalise the new salary structure by the end of next week. Stock prices of M&M are expected to be volatile today with an upward bias.

Asian Granito has decided to add capacity quickly via contract manufacturing as the demand for ceramic tiles is expected to grow up in 2013-14 after the industry has seen a clam growth this year. The company reported that for this it is tying up with some of the 15 manufactures to add capacity of about 25000 sq m per day in the coming six months. It is about to in all invest Rs 300 crore for putting in place the network of contract manufacturers. The stock is likely to see volatility for the day following the development.

Kalpataru Power and its subsidiary JMC projects has bagged with overseas and domestic orders worth over Rs 1810 crore. Individually Kalpataru has secured an order worth Rs 800 crores from the government and from ONGC while its subsidiary has got an order worth Rs 1010 crore. The stock of Kalpataru Power is likely to see upward movement today.