Index Trends & Stocks In Action For 9th April 2013

Indian markets ended marginally down on Monday with most of the stocks moving sideways amid lackluster trades. At the end of the day the Nifty closed at 5542 down by 10 points. Looking at the last two trading sessions, the market seems to be managing to play around levels of 5535-5560, which essentially is pointing towards the market making a base around these levels. In today’s trading session a small trading candlestick was visible on the daily chart. Also, the market made a similar double bottom for two consecutive trading days. Based on this, 5530-5525 will hold the key and will also play as an immediate support level for the Nifty. On the upside the Nifty will face resistance around 5570-5600 levels.

According to media reports, Adani Power has commenced coal production from yesterday at its Parsa East-Kanta Basan mine in Chhattisgarh. This is the first plant among the four MDO contracts bagged by Adani Enterprises. The Chhattisgarh coal mine has reserves of around 450 million tonnes. This mine is expected to produce 15 million tonnes of coal per annum. You could see some volatility in the scrip following this development in Adani Power.

Apollo Tyres is planning to set up a Greenfield manufacturing unit in Thailand or Indonesia. This plant to be set up at a total investment of around Rs 1600 crore will manufacture passenger-car tyres and truck and bus radials in the first phase. To be set up with an initial capacity of 16000 passenger car tyres and 1500 truck and bus radials per day will cater to the needs of the Asean region and China. We expect the stock to remain bullish for the day following this announcement.

Coal India is looking at focusing on strategies for higher off take of coal during the current fiscal. The Company has blamed lack of new railway tracks for new mines despite the higher availability of railway rakes as a major deterrent to increasing its input. The stock is likely to remain volatile during the course of the day.

According to media reports, McDowell Holdings the promoter firm of Mangalore Chemicals and Fertilizers (MCFL) has sold a 1.01 per cent stake in the company for Rs 3.4 core in the open market. Last week the SBI Group entity had sold over one crore shares i.e nearly 10 per cent in MCFL, which was  actually bought by rival Zuari Fertilisers. The MCFL stock could turn volatile following these developments and trade with a negative bias today.