Index Trends & Stocks In Action For 30th May 2013

The Indian markets closed in the red after three consecutive sessions of gains, weighed down by Realty and Metals coupled with weakness in global cues. The nifty ended with a marginal loss of 7points at 6104.

As we mentioned, we expect the markets to be volatile and what we witnessed yesterday was a volatile trading session. Today is an important day as it’s the expiry for the May series.

Going ahead, we expect the markets to face stiff resistance at around 6130 as it has formed a double top pattern around this level. If we manage to sustain above this level, we expect the markets to touch 6160-6200. On other hand, 6060 will act as a support level.

Tata Teleservices (TTML) said its promoters offer for sale of 3.5 crore shares will have a floor price of Rs 7.60 per share. Through the OFS scheduled to be held on May 30, 2013, in order to adhere to SEBI guidelines, TTML will be divesting 1.84% stake. Stock prices are expected to remain volatile today.

Bharti Airtel is likely to face a penalty of Rs 650 crore for allegedly violating license terms of the Subscriber Local Dialing (SLD) services. The Department of Telecommunications, this week, has approved the recommendations of a committee of the DoT which had suggested a penalty of Rs 50 crore each for 13 telecom circles where the company has violated the license terms, said news reports. Stock prices of Bharti Airtel are likely to be under pressure today.

Inox Leisure said yesterday that the Gujarat High Court and the Bombay High Court have sanctioned the amalgamation between Fame India and its subsidiaries with Inox Leisure. The merger will become effective from May 25, 2013. This is likely to cause some upward movement in the stock prices of Inox Leisure today.

Tata Motors announced its Q4FY13 results yesterday post market hours. The company beat street expectations and announced a good set of consolidated numbers. While domestic performance (standalone) remained weak, JLR (Jaguar Land Rover) added to the robustness of overall numbers. Stock prices of Tata Motors are likely to see some upward movement today.

Among the companies to announce their Q4FY13 results today are ABG Infra, ABG Shipyard, Aditya Ispat, Aurobindo Pharma, Axis Capital, Berger Paints, Cadila Health, Central Bank, Century Ply, DLF, Educomp, Financial Tech, Fortis Healthcare, Gammon India, GMR Infra, Gujarat Flourochemicals, Gujarat State Petronet, India Steel, Indian Oil Corporation, IPCA Lab, Kingfisher Airlines, Madras Cements, Mahindra & Mahindra, Page Industries, Pipavav Defence, SAIL, Sunteck Realty, Suzlon Energy, Tata Power, Tide Water Oil, Uflex, Unitech, United Breweries, Vadilal Industries and Videocon Industries. In all there are 1218 results today and all of these stocks are to remain volatile through the day with the directional movement depending on the result they announce.