Index Trends and Stocks In Action for 1st April 2013

Indian markets rose for a second straight day on Thursday as Heavyweight stocks gained on back of short covering on the final day of March Future and options expiry and as technology stocks edged up on hopes about upcoming quarterly results. Nifty closed at 5682 up by 40 points. We mentioned in our last write up that we have formed a near term bottom and market is ready for a quick bounce back and what we witness was a good bounce in nifty of around 80 points from days low.  Going forward immediate barrier for nifty stands at 5700 and once we breach this level next level were supply is likely to come in is 5725. Trading wise support for nifty on down side stands at 5650 and 5620.

MTNL has raised Rs 1005 crore through bonds which have been backed by sovereign guarantee from its institutional investors. Part of the bonds will be used to repay its debt carrying high interest rates and partly for capital expenditure. On this announcement we expect its stock to see some volatility today.

According to media reports, Power Grid is developing an advanced grid security system at an expense of Rs 1300 crore. This will boost the county’s electricity transmission network and save it from possible cyber attacks on the power systems. The development seems important considering last year’s power blackout in the major grids of the country. A positive action can be seen in the stocks of the Power Grid.

Jindal Steel and Power has reported that company has acquired a 31.49% stake in Gujarat NRE Coke’s Australian Subsidiary. The company was looking to acquire majority stake but could only manage 31.49% stake. On this announcement one can expect some volatility in the share of Gujarat NRE Coke and Jindal Steel and Power.