Index Trends & Stocks In Action For 14th May 2013

The Indian markets tanked by more than 2% on Monday recording their biggest percentage fall in 14 months. Investors and traders booked profit after sharp gains last week with ITC among the index heavyweights leading the decline. In our last write up we had mentioned that the only worry for the market is that it is in an overbought zone and therefore profit booking cannot be ruled out. the fall was rather steep and one sided due to the triggering of stop losses for traders on the long side. Going ahead 5970 is one crucial level for the Nifty and if market slides below this, we could go down to levels of 5930. On the higher side the Nifty will face resistance around levels of 6000-6025.

Cairn India plans to drill 48 wells at a cost of less than USD 100 million on the Mangala oilfield in the prolific Rajasthan block to extend the current production plateau. The company last month wrote to the block oversight committee saying, "Production performance analysis, reservoir modeling and subsurface studies have shown that by drilling up to additional 48 infill producers (well) the current plateau can be further extended and reserves increased." All this bodes well for the stock which is likely to remain in action for today.

PC Jeweller has invested Rs 175 crore since last month to buy gold and diamond jewellery stocks for six new retail outlets, and will infuse another Rs 225 crore in the next quarter on further expansion. The company, which has five jewellery manufacturing plants in Dehradun and Noida, had 30 retail stores till last fiscal which has now gone up to 36. This expansion spree surely spells good progress, but will a falling gold price lift its fortunes with higher demand? Only time will tell, for now the stock is likely to remain in action for today and some time to come.

Reliance Mediaworks reported a consolidated net loss of Rs 219.19 crore for the quarter ended March 31, and its plans to raise Rs 605 crore from a private equity fund has been delayed. The company had posted net loss of Rs 154.14 crore in the same quarter in the previous fiscal. Net sales for the quarter stood at Rs 140.54 crore, as against Rs 173.41 crore in the year-ago period. Watch this stock and stay away from it at least for now.

Leading infrastructure firm Punj Lloyd has bagged an order worth Rs 730 crore from ONGC for executing a sub-sea pipeline project at Bombay High oil field. The stock will see some action in today’s trading.

Shares of Poly Medicure a pharma company are expected to show a robust performance on the bourses after the company recommended a bonus of 1:1. It has reported a strong March quarter performance in which its revenues went up 25% to Rs 68 crore while net profit has increased by 79% to Rs 9.25 crore. The stock is also seeing a hugely positive sentiment and an upward move is expected from the current levels for it.

Suzlon Energy has allotted a total 12.09 crore shares amounting to 5.71% of its share capital to IDBI Bank via the preferential allotment route. IDBI Bank is also a lender to the debt ridden Suzlon Energy which is undergoing a corporate debt restructuring program. The news is likely to be seen positive for the company.