Index Trends & Stocks In Action For 09th May 2013

The Indian markets on Wednesday continue its uptrend trend with the Sensex crossing the 20,000 mark on an intraday tick trade. This trend was supported by strong global cues, healthy gains in FMCG shares and good numbers announced by HDFC. The Congress victory in Karnataka’s state elections also helped improve sentiment. The 50-share Nifty ended at 6069, up by 26 points. Looking at the daily charts on the Nifty, a doji candlestick formation can be seen. This formation after a strong up-move indicates the bull may take a break for some time. Even the RSI suggests that the Nifty is in the overbought zone. Going ahead, 6020 will form as key support on the downside.  The intraday mood may become negative if the market trades below the level of 6020. On the upside, the Nifty may face resistance at levels of around 6090-6125.

Triveni Engineering yesterday, post market hours, reported its March quarter results. The company narrowed its loss from Rs 31 crore in March 2012 to Rs 21 crore during the March 2013 quarter. It has also reported 15.64% growth in its topline to Rs 584 crore on the back of higher income from sugar and co-generation businesses. The company had reported minor profit in the December 2012 quarter and a loss again may keep the stock volatile today.

SKS Microfinance, as per its March quarter result has come back to profits. The micro lender, in the March 2013 quarter has reported profit of Rs 2.7 crore against a loss of Rs 329 crore a year ago. Its loan disbursements have increased by 65% and cost of borrowing has come down to 12% from 13.2% in December 2012 quarter. The management has said that the financial turnaround of the company is sustainable and it expects to increase its capital base and liquidity going ahead. We expect the stock to show some positive trades today.

Jubilant Industries announced its Q4FY13 results post market hours yesterday. These numbers were disappointing on every front and are expected to negatively impact stock prices today. In Q4FY13, its revenues declined by 11.55% to Rs 224.59 crore. At the same time, it clocked an operating loss of Rs 12.47 crore in Q4FY13 from an operating profit of Rs 1.72 crore in Q4FY12. Also, its net loss aggravated to Rs 16.94 crore in the quarter under review from a loss of Rs 4.32 crore in Q4FY12.

Among major companies to announce their results today are Ajmera Realty, Asian Paints, Borosil Glass, Escorts, Gati, Godrej Properties, GTL Infra, HCL Infosystems, Indian Bank, Jubilant Foodworks, NDTV, PNB, Union Bank and Usha Martin. These stocks are expected to remain volatile through the day with the directional trend depending on the results they announce.