Index Trends & Stocks In Action For 5th April 2013
Shailendra Lotlikar / 05 Apr 2013
The breaking of the Index below its 200 day moving average signals of another fresh down turn at least to the extent of 5-6% from here. Global cues are not very encouraging and the domestic scene continues to be marred by political instability making traders and investors nervous. Here is what you could expect the Nifty to be doing today along with the stocks that are likely to remain in action.
Indian markets limped for the second straight trading session as Investor and traders unwound their bullish positions and mounted fresh short positions on Thursday. The Nifty slipped below its 200-day moving average yesterday. What does that mean for the markets? The 200-DMA is a long term moving average that helps to determine the overall health of the index. A stock or an Index trading below its 200 DMA is in a long term down trend. Usually, when an index or any stock falls below its 200-DMA it declines by another 5-6% from there on. This is likely in case of the Indian indices as 32-33 stocks out of 50 stocks of that comprise the Nifty, are trading below the 200-DMA. Going ahead the Nifty takes support around levels of 5545 and 5520, whereas immediate resistance on the upside comes in at 5610-5630.
According to media reports, Reliance Power has begun generating electricity at its first 660 MW unit at the Sasan ultra mega power project. The power generated from this project is to be sold to 14 distribution companies across seven states. The company has invested close to Rs 23000 crore in this project. Following the announcement of having commencement of generation from this unit, the Reliance Power stock is expected to remain in action today. The Reliance group stocks anyways have been enjoying a good ride ever since the two factions have come together through RILs investment in RCom for sharing its fibre optic network.
NTPC which was looking to invest over Rs 11000 crore to set up a 1600 MW coal-based project in Odisha has now decided to shift it to Gadarwara in Madhya Pradesh. This decision follows the delay in land acquisition and environmental clearances that it has had to face. Currently, the company operates two thermal power plants of 3000 MW and 460 MW in Odisha. Following this news the NTPC stock is likely to remain volatile for today.
Shortage of iron ore is creating troubles for JSW Steel. The slow progress in the resumption of category A mines has been a major cause of concern for the company. Currently the company is left with only one month worth of iron ore stock, and hence is eagerly waiting the SC nod for Catergory B mines to resume mining. The company is currently running at 70% of its total plant capacity. The stock could face a downside following this news today.
Piramal Healthcare is reportedly planning to to offload its 11 per stake in telecom major Vodafone India. Piramal had picked up an 11 per cent stake in the Indian arm of the company for Rs 5900 crore in two tranches earlier. A strong growth probability had enticed the company into this investment. The plan to sell the stake now will see the stock wobble in trades today.
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