Index Trends & Stocks In Action For 20th March 2013

The Indian markets on Tuesday ended lower by more than 1% amid political uncertainty after the DMK withdrew support from the ruling UPA alliance and as the Reserve Bank of India said that the headroom for further monetary easing remains quite limited. The Nifty closed at 5746. In our last write-up we mentioned that if the Nifty breaches a level of 5790, conclusively we expect mayhem on the street. What we saw in yesterday’s trading session was that as soon as the Nifty breached 5790, it made a low of 5724. It has formed a Bearish Engulfing candlestick pattern, which is a bearish reversal pattern. Going forward the Nifty has strong support at around 5720 and major short-term support at 5660. On the upside, 5790 and 5820 will act as resistance levels.

Jindal Steel and Power is in talks to acquire majority stake in iron ore assets of Australian firm Apollo Minerals. It already holds 11.7% stake as a significant shareholding in Apollo Minerals and would be investing an additional Rs 56 core. Apollo is a diverse iron ore, base and precious metals exploration company. On this development, we expect the stock price of JSPL to see volatility today.

Elder Pharmaceuticals has reported that it has come up with a joint venture with Japan’s Kose Corporation in order to manufacture and sell cosmetics in India. 40% of the entity’s holding will be with Elder Pharmaceuticals and the rest with Kose Corporation. The working will be at company's existing plant in Himachal Pradesh. On this announcement, we expect the stock of Elder Pharmaceuticals to see some volatility for the day.

According to media reports, Asian Paints is acquiring a majority stake in Sleek Group which has a significant presence in the kitchenware market. Company reported that this acquisition is a strategic fit and would give Asian Paints an entry in the home improvement segment. The board has approved its 51% stake in the Sleek Group. Stock prices of Asian Paints are likely to remain in focus for the day.

Speciality Restaurants is in talks to acquire an American regional brand for its foray in quick service restaurants. The discussion for the acquisition is at its final stages and the deal is likely to be inked in the next couple of months. Stock prices of Speciality Restaurants are likely to see some upward movement today.