Index Trends & Stocks In Action For 21st March 2013

The Indian markets ended lower for the fourth straight trading session to a two week low close on Wednesday on the back of continued fears of political instability. The Nifty ended down 52 points lower than yesterday, below the 5700 mark at 5694. Looking at the daily charts of the Nifty, we see 5660-5690 are crucial level for the bulls to sustain, once these levels are broken we may see mayhem in the markets. Now why we are saying levels of 5660-5690 are important for the bulls? Nifty has multiple supports between 5660 and 5690. These levels are also short-term bottoms made post-budget and we rallied almost 200 odd points on the Nifty. 5684 is a 200-EMA for the Nifty.  If the Nifty sustains these important levels of 5660-5690, we expect a pull back of 70-100 points on the Nifty.  Immediate resistance for the Nifty on would come in at 5750.

Sadbhav Engineering has bagged an order worth Rs 382 crore from NHAI. The company has bagged this order for the widening of an 80 km stretch of NH-210 in Tamil Nadu. It reported that the concession period of the project is 15 years. This project also includes a construction period of two years from the date of appointment. On this development, we expect the stock of Sadbhav Engineering is to react positively during the day.

DLF yesterday reported it has launched a studio apartment project in Lucknow and at the same time other major cities in Uttar Pradesh are on their way to come. Within the next 3-6 months, DLF would be launching similar studio apartment projects in over six cities in India. On this development, we expect stock prices of DLF to remain in focus during the day.

According to media reports, Marico could be facing margin headwinds in the coming quarter of Q4FY13. This can be attributed to sluggish volume growth and rising raw material prices. This could lead to some selling pressure on the stock of Marico today.

3M India told the BSE yesterday that it has announced a floor price for the proposed sale of shares. The company is to sell 113198 equity shares of the face value of Rs 10 each. According to the company, the floor price for the sale would be Rs 3300 per equity share. Stock prices of 3M India closed yesterday at Rs 3420 per share. There could be some more downward movement in the stock today.