Index Trends & Stocks In Action For 17th May 2013

Indian markets extended gains to end higher on Thursday amid a range bound trading session led by heavyweight Reliance Industries and few bank shares. The Nifty ended up by 23 points at 6170. Nifty has been making higher tops and higher bottom pattern from last five consecutive weeks. Market has rallied almost to 6200 levels. If nifty manages to hold the 6200 levels then it may head towards life time high of 6340-6350 levels. For intraday key support for nifty will come in around levels of 6125 and 6090. Resistance for the nifty will come in at 6190 level and 6230.

The promoters of Tata Teleservices (Maharashtra) will be offloading an aggregate of 5.16 crore shares through an offer for sale today. The promoters, through this method would sell shares representing 2.72% of the equity share capital of the company. The floor price would be submitted in a sealed envelope to the exchange today post market hours. Share prices of Tata Teleservices are expected to remain volatile today.

Berger Paints yesterday announced that it will double its distribution network from current 12000 and will also double its revenues to Rs 5500 crore in next four years. At the time when paint stocks are seeing a good sentiment on the stock exchange, this news is likely to have a positive impact on Berger Paints and hence we can expect a positive momentum in the stock today.

Reliance Capital  yesterday reported a 20 percent year-on-year drop in its fourth quarter consolidated net profit to Rs 156 crore, driven by lower income from operations that fell 15 percent to Rs 1,650 crore.However, a reversal of Rs 85 crore tax provisions arrested a sharper fall of net profit. Without this component, net profit would have tanked 75 percent y-o-y to Rs 71 crore. We expect a negative impact on the counter today.

Chemical company, Aarti Drugs yesterday after the market hours came with Q4 numbers. The company reported 9% growth in its top line to Rs 220 crore. The net profit rose by 86% to Rs 13 crore against Rs 7.4 crore a year ago period. Its EBITDA margins increased by nearly 300 basis points to 16% which is a superior performance. The finance cost has rose marginally on sequential basis. The company also has announced a dividend of Rs 4 per share on the face value of Rs 10. We expect a positive movement in the stock today.