Index Trends & Stocks In Action For 22nd March 2013

The Indian markets fell for the fifth successive day yesterday. It markets the markets highest losing streak since the seven-day fall ending November 19, 2012.  The Nifty closed 35 points down at 5658. In our last write up we had mentioned that we expect the markets to bounce back around 70 points. In afternoon trade yesterday, the markets did make a high of 5758, which is almost 70 points from Wednesday’s closing.

Yesterday the market fell by only 30 odd points but they way it traded poses a big concern. From yesterday’s trading, it was clear that traders are waiting for opportunities to go short at every rise and supply is just waiting to come on any pullback. One more important thing is to notice that the Nifty for the first time in the last six months has closed below its 200-day EMA. This suggests the markets are getting hammered by the bears.  Going ahead we should keep an eye on the level of 5639, which is a crucial support level as defined by Bollinger band. At the same time, immediate resistance for the nifty would come in at levels of 5690-5700.

According to media reports, Om Metals Infraprojects has bagged an order worth Rs 54 crore from the Ministry of Water Resources, Nepal. It has secured this order for the design, supply, fabrication and commissioning of the hydro-mechanical works at Sikta irrgation project. It has to be completed within a time span till June 2015. On this development, we expect the stock of Om Metals Infraprojects to see some upward movement today.

Alstom has reported that it has bagged a contract worth Rs 573 crore from BHEL. Through this, Alstom will be supplying equipment to BHEL for a thermal power plant at Nabinagar at Bihar. It will also be designing the boilers and supplying identified pressure parts of 660MW supercritical boilers. On this development, we expect stock prices of Alstom to see some upside today.

According to media reports Oil & Natural Gas Corporation (ONGC) has announced that it will be coming up with three significant discoveries which include two in the Krishna Godavari basin and one at Tripura. For the same, it has decided to invest a sum of Rs 4050 crore which will be utilised to upgrade the western offshore facilities with the help of its two major projects. On this announcement from the company, we expect the stock of ONGC to see volatility today.

JSW Steel was facing the problem of shortage of iron ore for more than 18 months. It said yesterday that it planned to import 5 million tonnes of the raw material to operate its plants at Salem, Tamil Nadu and Dolvi near Mumbai. It is sourcing the ore from Australia and South American countries. On this announcement, we expect the stock of JSW to see some volatility for the day.