Index Trends And Stocks In Action For 23rd July 2013

The India equity markets ended flat on Monday, amid a volatile trading session, weighed down by profit taking in L&T after the engineering major announced disappointing first quarter earnings. The 50-share Nifty inched up 3 points to close at 6032. In our last write up we mentioned that the markets may consolidate and that if the Nifty sustains above 6039, we may see a rally up to levels of 6072. What happened yesterday was in line with our expectations.

On analysing the daily chart of the Nifty, we see a double top formed at levels of around 6064-6067. A fresh move in the Nifty is only expected if we cross this major hurdle. 5990 is a crucial support level for the Nifty, on the downside. If we close below the level of 5990, we may dip to levels of around 5920.

Bayer Crop Sciences has said it will buy back 7.29% of the total equity capital of the company from shareholders at a price of Rs 1580 per share. Shares of Bayer Crop hit a new high of Rs 1777 per share yesterday which means that the shareholders are expecting this price as a minimum buy back price. Shareholders would be disappointed from the offered buy back price as it is lower than the expected price. One can expect some gains in the shares of Bayer Crop as a general trend in such cases.

Greenply Industries is coming with its Q1 numbers today. In its Q4 results, the company reported over 100% growth in its net profit with margin expansion in the core business. The stock hit a new high on the result day itself but eventually lost the sheen with markets going down. MDF, its new business segment is growing fast-pace and hence there are higher expectations from the stock. We expect a positive movement in the stock in the morning trades.

Mobile value added services (VAS) firm OnMobile Global has closed the deal to acquire US-based Livewire Mobile for USD 17.8 million, a move aimed to increase its mobile entertainment portfolio in North America. The deal (worth about Rs 106 crore) will help OnMobile gain a stronger foothold in the North American market, which is considered a high music consuming market with high average revenue per unit (ARPU).

Lupin has received the US health regulator’s approval to sell its generic version of Glumetza HCl ER Tablets, a diabetes drug, in the American market. The company’s US-based subsidiary Lupin Pharmaceuticals Inc has received final approval from US Food and Drug Administration (USFDA) for its Metformin Hydrochloride extended release tablets in strengths of 500 mg and 1000 mg. Stock prices of Lupin are expected to see some upward movement today.