Index Trends & Stocks In Action For 15th May 2013
Shailendra Lotlikar / 15 May 2013
After a volatile trading session yesterday, the markets are likely to take cues from their global peers and also ride the lower inflation data which sounds some good news on the macro front. A buildup of expectations will now gradually begin until the RBI meets in June and this will lend a positive bias to the markets. How are we poised technically? Here is a sneak review of the Nifty along with the stocks that are likely to remain in action for today.
The Indian markets ended marginally higher on Tuesday amid a volatile trading session led by Ranbaxy and Sun Pharma. The markets had firmed up after a better-than-expected April WPI number. The Nifty was up 15 points at 5995. In our last write up we mentioned the importance of 5970 as a support for the Nifty and it made an exact low of 5970 from where it bounced back sharply. The Nifty has formed a Bullish harami candlestick pattern. The significance of a harami candlestick is that, it hints at a diminished selling. The index has a strong support at 5970 and if the market breaks this level we may see levels of 5930 on the Nifty. On other hand 6000-6025 will act as hurdles for the Nifty on the higher side.
Elder Pharma which yesterday surged by more than 10% on huge volumes may show some volatility even today. The company reported its Q4 results after market hours according to which its top line has declined by 2% to Rs 250 crore. The net profit however was up marginally due to the rise in the other income. Margins have fallen, which may disappoint investors considering the rebound in the price yesterday.
Ranbaxy yesterday announced a USD 500 million settlement with the US Department of Justice. The company already provided for USD 500 million and hence there will not be any fresh burden on its current financials as well as on its business outlook. The markets have also discounted the settlement fee at the time when the actual provision was made. The mood on the stock may remain positive today as a major overhang on it is gone.
Piramal Enterprises has received an approval from the US health regulator for its investigational new drug (IND), P11187. This drug aims to target diabetes. The approval will enable it to initiate Phase I clinical trials of the new chemical entity (NCE) on healthy volunteers in the US. The stock is likely to remain in action for today following this news.
Reliance Power will generate an additional 2640 MW at its Sasan plant in central India in this fiscal year. The first 660 MW unit of the plant in Madhya Pradesh started operations in April. The stock will ride this development today and see some upside in trades.
BHEL will invest Rs 500 crore for setting up a manufacturing facility at Bhandara in Maharashtra. "BHEL is setting up a new Power Equipment Fabrication Plant at Bhandara in Maharashtra. The greenfield unit is being set up by the company at an initial investment of Rs 500 Crore and will provide direct employment to about 700 persons," said a company statement. The move sounds to be a good one at least in intent and is likely to help the stock remain in action today.
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