Index Trends And Stocks In Action For 29th August 2013

The markets ended on a flat note. According to reports, Life Insurance Corporation was spotted buying shares which helped the market cut its losses. The Nifty ended with a marginal loss of two points at 5285. In our last write up we had mentioned two important things; first was about the VIX and second the 5200 level on the Nifty which we had said is very important. Our purpose in mentioning the VIX was to make you aware of the high volatility that is expected in the market. Second was about the 5200 mark on the Nifty. No sooner had the Nifty breached the 5200 level, it fell like a pack of cards. The daily charts show a big candlestick of about 200 points with huge volumes. This suggests, the market may extend this relief rally and may touch levels of 5290-5330. We expect the market to be volatile and will swing like a pendulum. Support for the index will come in at 5220-5180.

Pratibha Industries has bagged a Rs 230 crore order from Public Health Engineering Department of Jaipur for a water supply project. The contract is scheduled to be completed in 36 months from the date of commencement. The development could keep the stock well in action today, offering a good buying opportunity to ride on the new order inflow news.

Indian Oversea Bank (IOB) has sought capital support of Rs 2100 crore from the government for enhancing its capital base. Tier I capital or the equity capital of the bank stood at 7.80% at the end of March 2013. As of March 2013, the total capital funds of the bank stood at Rs 18366 crore due to allotment of preferential shares to the government of India. The stock will be keenly watched by the market amidst the volatility and poor sentiment that surrounds the banking sector today.

V-Guard Industries expects to make a profit from its 'non-south' operations where it has spent close to Rs 70 crore on expansion over the past five years. The news could help the stock up in todays trade as the market takes a note of it.

Private lender Kotak Mahindra Bank aims at achieving a 20-30% growth in total business in the current fiscal, despite tough market conditions and will expand its reach by opening over 100 branches across the country. Sounds good, the market could stock up on its shares. It could help ride the wave of growth that could come in following its expansion.