Index Trends & Stocks In Action For 15th March 2013

The Indian markets snapped its three-day losing streak on Thursday after banking stocks rebounded from their day’s low. The Nifty ended higher by 1% at 5909. It formed a bullish engulfing candlestick pattern. The Bullish engulfing candlestick pattern is an important bottom reversal signal. Going ahead, the Nifty is likely to find support around levels of 5880 and 5850 and on the other side; the Nifty may face resistance around levels of 5930-5960.

VBC Ferro Alloys has informed BSE that it has resumed its manufacturing operations on Thursday March 14, 2013. It is in the process of procuring power from private producers. After taking into consideration the energy deficit situation estimated by power distribution companies, it had suspended its manufacturing operations. Since it would now resume these, the company’s stock prices are likely to see some upward movement today.

According to media reports, Reliance Industries has signed an agreement to sell natural gas from its flagging eastern offshore KG-D6 fields to Indo Gulf Fertilizer’s Jagdishpur plant. As per sources, RIL signed a Gas Sales and Purchase Agreement (GSPA) to sell around 0.228 million standard cubic metres per day of Gas to Indo Gulf. At the same time, supplies are yet to begin as Indo Gulf is still negotiating an agreement to transport gas through GAIL. Following this development, the stock price of RIL is likely to see some volatility for the day.

Jindal Steel and Power has planned to set up five greenfield power plants across five African nations of 300 MW each. These projects are likely to commence from the beginning of FY14. At the same time, it has also decided to invest Rs 14000 crore in the next financial year. The investments by the company would be equally spread between its steel and power business. The stock price of JSPL is likely to see upward movement today.

The divestment in Nalco through the OFS route is to hit the markets today. The government yesterday fixed Rs 40 per share as the floor price. From the up to 10% stake sale, it is likely to fetch a minimum of Rs 1031 crore. In yesterday's trading, Nalco closed at Rs 44.25 on BSE. The shares fell nearly 5% at the closing. Owing to the divestment, we expect the stock to see volatility in today’s trading session.