Index Trends & Stocks In Action For 14th March 2013

The Indian markets on Wednesday posted their biggest fall in two weeks on the back of weak global cues. The fall was led by rate-sensitive banking stocks, which fell by more than 2%. The Nifty closed at 5851, down by 1.06%. Option data suggest there is a significant build up of puts at 5700 and 5800 levels and at the same time the Call build up is more around 5900 and 6000 levels. Based on the option data 5900 may form as an immediate resistance in the coming trading session. At the same time we may see a support zone around 5830. On an intraday basis, 5820 will be a crucial support zone and resistance will come in at 5880.

According to media reports, Apollo Global Management is to sell its 11% stake in India’s largest direct to home satellite service operator Dish TV India. The market value is currently worth a little more than Rs 700 crore. The stock of Dish TV India is likely to see some volatility following this development.

The Government’s 12.5% stake sale offer in Nalco will hit the market on March 15. It is to mop up around Rs 1400 crore to the exchequer. Yesterday the EGoM decided on the base price for the share sale. However the base price for the issue remained undisclosed. Currently the government holds 87.15% in Nalco and post disinvestment it will come down to 75%. This announcement is likely to see some positive movement in the stock for the day.

According to media reports, BGR Energy has been pulled out from a contract with NTPC worth Rs 800 crore. BGR energy which had bagged the contract in 2011 has not yet been started. The contract was for the supply of power equipment to NTPC’s proposed project of 1600 MW at Odisha. The company reported that the project could not be started due to non availability of various clearances and physical possession of land. Following this announcement, the stock of BGR Energy is expected to see downward movement today.  

Analysts have expressed their positive outlook over Tata Motors. Jaguar Land Rover sales were moderate at above 3% for February 2013. However, the moderation was due to slowness in China which was caused due to the Chinese New Year. This is evident from the exceptional performance in China in January 2013. This is likely to cause some correction in the downward movement seen in the immediate reaction towards sales numbers.