Index Trends & Stocks In Action For 23rd August 2013

Equity markets recovered what the lost the day before with the Nifty soaring up more than 100 points supported by a sharp rally in Metals and Oil & Gas shares. The Nifty gained 105 points to close at 5408. In our last write up we had hinted of a relief rally or a smart pull back and what was witnessed yesterday was in line with our expectations. On the daily charts the Nifty has formed a double top around levels of 5420. If this level is crossed, we may rally up to levels of 5455. On the downside 5390 will act as support and another major support will come around 5320.

Within days of announcing its plans to expand to as many as 50 countries by 2020, Hero MotoCorp, commenced its operations in Peru - one of the largest two-wheeler markets in Latin America. Having roped in MOTOCORP S.A.C, a part of the reputed EFE Group of Peru as its local partner, Hero has kicked off its operations with a well-established large distribution network of as many as 85 outlets spread across the country. The development will be seen to be as good for the company and keep the Hero stock in the limelight today.

Dr Reddy's Laboratories has initiated recalling of a total of five lots of Ranitidine Hydrochloride tablets, USP, used in gastric problems, and 150 mg bottles from the US market due to microbial contamination of non-sterile products. The drug was supplied to three different parties without label to enable them to sell the drug under their own label. Not a very grave concern the news could have some impact on the DRL stock today but nothing negative.

Pune-based, Zensar Technologies has signed a large contract in the USA. According to the company, this is a multimillion contract with a very reputed direct selling company for five of its remote locations. With this, the company now has outstanding projects worth USD 250 million and it expects all the business lines to do well in this fiscal. Watch out for this stock as you trade today. It could give you some good trading profits following the positive development.

The woes of the crisis hit Financial Technologies will continue on the bourses today. According to a company release to the BSE, two of its directors R Devarajan and PR Barpande have resigned from the board. The release hasn’t stated any reason for the resignation, but matters certainly do not seem to be good enough out there. Still holding the stock? Read our detailed report on the NSEL crisis and what you should be doing with your holding in any of the two listed entities of the group.