Index Trends & Stocks In Action For 07th May 2013

The Indian markets witnessed a volatile trading session but managed to end higher led by buying in software and Metal stocks. The Nifty closed at 5971 up by 27 points. It was a terrific day for the bulls as the market bounced back almost 50 points from its intraday low and closed near the day’s high. Going ahead 5925 will be the immediate trend support level as the Nifty has formed a double bottom around this level and if that is breached it may slide to levels of 5880. It is facing a strong supply around levels of 6000-6020. This zone will be a crucial resistance for the Nifty. If we manage to close above this level with volumes we may see a breakout.

State Bank of India (SBI) today said it will consider the merger of five associate banks in the second quarter of this fiscal. SBI did its first ever amalgamation of its associate State Bank of Saurashtra in 2008 followed by State Bank of Indore in August 2010. The country’s largest lender has five associate banks —— State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. But why the stock will remain in action today is not so much because of its merger call but because of the cobra-post disclosures. Watch it carefully.

Kansai Nerolac Paints has reported over a two-fold increase in its standalone net profit to Rs 123 crore for the quarter ended March 31, 2013. This is against its standalone net profit of Rs 44.9 crore in the corresponding period last fiscal. Net sales for the reported quarter stood at Rs 684.2 crore, up 2.6 per cent, as compared to Rs 666.8 crore over the same period of the previous year. The stock is expected to be in action today following this good set of numbers.

According to a company release, Gitanjali Gems has opened 11 new branded stores in various cities in the last two months. The company has been adding stores aggressively and targeting Tier II and Tier III cities to increase its sales. Opening 11 stores is a part of this strategy which bodes well for the company. One can expect investor's to react positively to this development.

Auto major, Mahindra and Mahindra has launched a new pick up vehicle named Bolero Maxi Truck Plus in the pickup vehicle category. Priced at Rs 4.33 Lakh and Rs 4.43 Lakh ex-showroom in Thane and Mumbai the Bolero Maxi Truck Plus has a higher load carrying capacity and improved safety measures. According to the management the Indian pickup vehicle market is growing rapidly and M&M is a leader in this market with a 54% share. The launch of the new product by the company is likely to reflect on its stock price and hence we are expecting some gains in the shares of M&M.