Index Trends & Stocks In Action For 25th April 2013

As expected the Nifty took a pause in the preceding trading session and stayed below the resistance levels of 5865-5870. Whatever the fundamental factors, technical indicators are pointing towards a fairly good opening today. the Nifty has managed to stay over the Bollinger Band of 5843. Aroon Oscillators are also still indicating towards a buying opportunity. The index has remained above the 10- day, 21-day and 200-day moving averages. Immediate support comes in at 5815-5817. As for the expected index movement, if the Nifty manages to cross 5865, it can touch levels of 5950.

It is being reported that, in the backdrop of the financial deal between Jet Airways and Abu Dhabi's national carrier Etihad, the two regions have decided to revise their air capacity upwards to 36670 seats per week from the existing 13300 seats per week. This sparks concerns among the local airlines and private airports. The revision is against a demand of 42000 seats per week that Abu Dhabi government had asked for. According to reports, the increase will be spread over a period of three years whereby, 11000 seats will be added by December 2013, 12800 by next year and 12870 by 2015. All this spells positive for Jet Airways scrip which is likely to make up move on the bourses today.

Bharti Airtel, has entered in a definitive agreement to buy Warid Telecom Uganda for an undisclosed sum. According to the management of the company, the acquisition of Warid Telecom Uganda, offers great synergies together. This deal will increase Bharti Airtel's customer base in Uganda by 61 per cent to 7.4 million and its market share to 39%. The company will offer services like 3G and Airtel Money with the new customers giving it higher revenues. The Bharti stock will today see some positive move following this development.

Many foreign and domestic brokerage houses are positive on BPCL following the recently announced oil discovery in Cauvery basin. The stock is already up 9% this fiscal and is expected to continue doing well. BPCL’s exploration and production business is gaining traction which will benefit the stock going forward. On this rising optimism we expect the stock to show some gains.

Tech Mahindra acquired lab assets and operations of Sweden-based Type Approval Lab for an undisclosed amount. This acquisition will help Tech Mahindra continue its efforts to provide end-to-end test solutions to device manufacturers and global carriers. It will also help boost its presence in the EMEA region and help its customers launch their products in EU and the rest of the world. Tech Mahindra along with its wholly owned subsidiary CanvasM Technology has state-of-the-art labs already in place, established in India and US a few years ago and is one of the fastest growing global labs certifying more than 800 + devices. It has established itself in Europe through this acquisition, said Tech Mahindra in a release. Stock prices are expected to see an upward movement today.

Axis Bank announced its Q4FY13 results yesterday. The country’s third largest lender announced a 22% YoY rise in profits to Rs 1555 crore. The profits of Axis Bank were boosted by higher non-interest income, interest income and better margins. Net interest margin improved by 13 basis points sequentially to 3.70%, other income rose by 26% YoY and the bank’s asset quality improved slightly. The cumulative value of assets restructured was Rs 4368 crore. Since the company’s results have been better than expectations, we expect stock prices to see upward movement today.

JSW Steel plans to bid for iron ore mining blocks in Karnataka that could go up for auction after a Supreme Court order last week. As the country's third-largest steel producer looks to cut its dependence on costly imports this move could well be in operational favour of it. The stock will some movement in the coming days.