Index Trends And Stocks In Action For 19th July 2013

It turned out to be a strong day for the Indian equity markets on Thursday. After swinging around through the day, the Nifty saw a sudden surge in the last hour of trade to close well above the psychological mark of 6000. The 50-share Nifty gained 64 points to end at 6038. In our last write-up we mentioned that the Nifty is forming higher bottom and a breakout is on the cards. What we witnessed was in line with our expectations.

We continue to be bullish on the Nifty and one should look for consolidation and correction in the Nifty to build a long position. We may see minor correction or consolidation in next couple of days as the Nifty is heading towards the overbought zone. The trend for the Nifty in the short-term looks positive as long as we continue to hold the 5900 mark. For intraday, the Nifty will face resistance at levels of around 6060-6090. On the down-side, support will come in at 6010-5970.

BEML, has bagged a new order worth Rs 747 crore for the manufacture and supply of 92 sets of Standard Gauge Metro Cars for the Phase III, RS – 9 Project of Delhi Metro Rail Corporation. Stock prices of BEML are expected to see upward movement today.

Eyeing a larger role in the defence space, Ashok Leyland said it is "stretching its wings" with its Super Stallion range of vehicles in domestic and overseas markets. It may lead to a surge in stock prices today.

Shriram Group has filed draft documents with the market regulator SEBI to launch mutual fund scheme as part of the Chennai-based conglomerate's efforts to revive its defunct MF business. Shriram AMC, the only listed asset management company in the country, had mutual fund schemes way back in the 90s which the company decided to eventually wind up due to lack of interest from investors. The stock may see a rise today.

After Infosys came out with its Q1 results, the markets gave it a good reaction. Shares of TCS also surged on higher expectations. Analysts were expecting 5% growth in its net profit to Rs 3878 crore. TCS however outperformed analysts’ expectations by reporting 6.5% growth in its net profit to Rs 3830 crore. Revenues grew 9.5% on a sequential basis to Rs 17987 crore during the Q1. Operating margins improved by 38 basis points on a quarter on quarter basis. On the back of these strong numbers, shares of TCS would witness a positive response on the bourses.

Yesterday, Mindtree posted its June quarter results post market hours. The company reported year on year 51.8% growth in the net profit to Rs 135.4 crore. Its revenues stood at Rs 647.7 crore, registering 15% YoY growth. In constant currency terms its net profit is up 47% which is also remarkable. Shares of Mindtree are likely to witness price appreciation.