Index Trends And Stocks In Action For 22nd April 2013

The Nifty has managed to sustain its recent support levels of 5595 in the past few trading sessions. Nifty with strong up-move also managed to overcome its strong resistance at 5755-5760 levels. We feel it is likely to continue its momentum today also. The Nifty has managed to remain above the 200 day moving average.  However the Bollinger bands suggest the movement may remain sideways. The ultimate Oscillators also indicate that the market has remained in over bought zone. But the other Indicators such as RSI and Aroon Oscillators are indicating towards positive opening for the Indian markets. However the movement may remain sideways throughout the trading session.

Investors may see some gains in the fertilizer stocks over the news that this year’s monsoon will be normal. According to reports, a normal rainfall is expected between June and September which means there will be timely sowing of summer crops eventually leading to a higher demand for the fertilizers. Some positive is expected in the fertilizer stocks such as Coromandel International, Chambal Fertilisers & Chemicals, Deepak Fertilisers and RCF.

India’s third largest software services firm Wipro bettered the street expectations in its results posted last week. Its net profit rose 17% to Rs 1729 crore while revenues rose by 3.2% to USD 1.585 billion or around Rs 8560 crore. What concerns to the street is its tepid revenue forecast of growth for next few quarters. The top management expects no pickup in demand until the second quarter of the current fiscal year. Shares are likely to show some correction over this.

Essar Ports may show some gains as the company has reported a fivefold rise in its net profit to Rs 331.6 crore. Its revenues grew by 28% to Rs 1421.53 crore. The company has seen a positive trend in cargo shifting to modern and efficient port which looks good for the company. In the quarter company has tried to maximise its operational efficiency and keep the costs lower which helped it shown a fantastic net profit growth.

Ahead today, results of Cairn India, Mahindra Lifespace, Mindtree, Ultratech cement, Persistent Systems, etc are expected. These shares will be strongly on the investors radars and some volatility is expected in these stocks.