Index Trends & Stock In Action For 30th April 2013

Indian markets ended higher as the FMGC major HUL played perfect role to light up the sentiments of traders and traders. HUL presented better-than-expected fourth quarter result. The Nifty closed up by 33 points at 5904. Technically nifty looking in good shape and on every dip buying interest is seen in the index. Nifty has rebounded sharply from levels of 5480-5500 while trading in higher highs and higher lows on daily charts which is bullish in nature. Nifty has a stiff resistance in range of 5970-6000 once index sustains above this level we can expect smart move. On Intraday basis nifty is likely to face resistance around levels of 5930-5950 and support for nifty will come in at 5870-5850.

Lanco Infratech has settled a lawsuit at its Griffin Coal unit which it was facing in Australia, and said it plans to invest up to 1.0 billion Australian dollars ($1.03 billion) over the next few years to quadruple the unit's output. The reports have also suggested that, Lanco could sell a stake in Griffin Coal in the next one year, and also take loans and raise money from its own cash flow for the investment.  The settlement is a positive development for the Indian infrastructure company as uncertainty over the outcome of the lawsuit was a hindrance to its fundraising plans. The company is also looking at options like selling stakes in local power and road projects to raise funds to cut its debt. One can expect some positive move in the stock today. 

MCX Stock Exchange (MCX-SX) will introduce trading in futures and options on its flagship index SX40 from May 15, 2013. SX40 is a free float-based index of 40 large cap and liquid stocks, representing diverse sectors of the economy. We feel the news will help the company garner some good volume making a positive impact on the stock.

Shree Cement yesterday reported a 6% growth in its topline but its net profit grew by hefty 2.4x to Rs 274 crore. This is better than market expectations of Rs 238 crore of net profit.  One can expect a positive bias on the stock today.

Ruchi Soya Industries has signed an agreement with Japan's Kagome and Mitsui to set up a joint venture (JV), Ruchi Kagome, to manufacture tomato products in India. The company is looking to gain about 20 per cent market share in this segment in the next five years. We feel the scrip may witness a good up move today.

Amid allegations of non-compliance and favoritism, the Defence Ministry has put on hold a joint venture between public sector Mazagon Dockyards and private sector Pipavav shipyard for building warships for Indian Navy. The scrip of Pipavav Shipyard may be impacted negatively today. 

Aviation sector has again made it to the news again with the ministry of civil aviation coming out with a new set of regulations for passengers being charged for additional facilities which also includes check in baggage. The news is expected make positive impact on all Aviation scrips like Jet Airways and Spice Jet.