Index Trends & Stocks In Action For 2nd September 2013

The markets ended higher on Friday amid a volatile trading session led by FMCG and IT shares. The Nifty ended up 63 points to close at 5472. In our last write up we had mentioned the importance of the 5360 level on the Nifty, which was a very critical support for the index on the downside. The bear’s paid respect to that support level and the Nifty made a low exactly at 5360 to bounce back sharply and close at the highest point of the day. An analysis of the daily charts is suggesting that the Nifty has formed a higher-top-higher-bottom with higher volumes, which implies good times ahead. On the Weekly chart too, the Nifty is witnessing a hammer pattern formation which supports the point that we could see a good rally in the coming days. For today the Nifty will face some resistance around level of 5505 with the next resistance level kicking around level of 5535. On the downside support for the Nifty comes around 5440-5390.

Petrol prices were hiked by a steep Rs 2.35 a litre, the sixth increase in the past three months, and diesel by 50 paise per litre on falling rupee and firming international oil prices. The increase in rate, which was effective midnight yesterday, is excluding local sales tax or VAT, Indian Oil Corp, the nation's largest fuel retailer, announced. Keep an eye on this stock in today’s trades.

Hero Motocorp has amicably resolved its issues with workers striking at its Haridwar plant. All protesting workers have returned and despatches from the Haridwar plant are getting back to normal. The stock will remain in action following this development.

Drug firm, Venus Remedies has said that it is targeting revenues of Rs 1000 crore by 2017. In FY13 the company had clocked revenues of Rs 460 crore. It has also said that it is expecting positive responses from the 5-6 overseas drug companies for out licensing deals for its three major research based products i.e. Elores, Vancoplus and Protanix. The stock may trade fairly positive today on the back of this news.

Tata Group stocks may shine today on the back of a rise in the market cap of the Tata Group on the bourses. Collectively all 32 listed entities of the group touched a combined market cap of Rs 5.9 lakh crore on Friday last week. This is the highest market cap in the country and is also on the way to become the first business house to attain the market cap of Rs 6 lakh crore. At Rs 5.9 lakh crore, Tata Group’s market cap is higher than collective market cap of the RIL group, Aditya Birla Group and the Anil Ambani-led Reliance ADAG Group. The rise in the market valuation indicates the faith investors have in the Tata Group. Watch out for the Tata Group stocks over the next.

The new Companies Bill has received President's assent, which will make it into a law replacing the nearly six-decade old regulations that govern corporates in the country. The Companies Bill 2013 received an assent from President, Pranab Mukherjee on August 29. A new wave of change will sweep through the corporate landscape now that the new bill has been enacted.