Index Trends & Stocks In Action for 29th April 2013

Indian markets ended on negative side on Friday April 26th 2013, snapping a four-day winning streak led by profit booking in ICICI Bank and Realty stocks like HDIL and Unitech ahead of the central bank’s annual policy review next week.  The Nifty closed down by 44 points at 5871. Nifty has formed Bearish harami candlestick pattern, it’s a reversal pattern composed of a small black real body contained within a prior relatively long white real body. Now going forward on down side important support level for nifty comes in at 5850-5820.on the higher side resistance for nifty will come in at 5930-5970. 

Luggage maker, VIP Industries has stated that it has launched a few new products recently. Caprese handbag, which was launched in the last Diwali is witnessing a good response due to aggressive pricing. Radhika Piramal, MD of VIP Industries said that the company will increase advertising spending in this fiscal. VIP also has announced a price hike in soft and hard luggage segment which will help it to expand its EBITDA margins by 100 basis points in the current fiscal. With the positive commentary on the business from the management, one may expect some rise in the share price of VIP Industries.

Troubled wind turbine maker, Suzlon Energy’s shares may see some green trades post its German subsidiary RE Power, has announced to cut 750 jobs worldwide. The job cuts will save about 100 million euros for the company which will be very important for Suzlon which is undergoing debt restructuring scheme. As a part of this scheme the company is required to reduce its costs as well as to sell some of its assets. The job cuts thus are a part of this and would be positive for the company.

Biocon is planning to launch its novel biological drug Itolizumab that would be used for the treatment of psoriasis. Branded under the name of Alzumab, the drug will be manufactured at the company's manufacturing facility at Bangalore. The global market for psoriasis treatment is estimated to be over USD 8 billion by 2016. Biocon has also completed a pre-IND (Investigational New Drug) meeting for this drug with the US Food and Drug Administration. Stock prices of Biocon are expected to see some upward movement today.

JSW Steel has decided to hold its plans of setting up a 10 million tonnes steel plant in West Bengal. This has been done because of the inability to secure long-term iron ore supplies for the Rs 35000 crore project. The company is currently trying to work with the central and state governments to secure mining leases. The project would be put on hold till there is further clarity/visibility on the iron ore issue. This is likely to cause some downward pressure on the stock prices of JSW Steel.