Index Trends & Stocks In Action For 3rd September 2013

The markets ended firm for the fourth consecutive trading session yesterday. The Nifty closed at 5550 adding 78 points in a day. In our last write up we had clearly stated that we could witness a good rally in the coming sessions and no sooner did the Index cross the 5505 level it added more than 50 points to itself. The Nifty continues to make a higher-top-higher-bottom pattern, which is a bullish pattern. We expect the market to consolidate for another day or two. Intraday, the Nifty will face resistance around 5590 with the second resistance level coming around 5630 points. On the downside the Nifty has support at around levels of 5510-5460.

Rajiv Bajaj, MD of Bajaj Auto is bullish on the festive season sales this year. According to him, trade will be particularly positive in September, October, and November. Export sales are expected to be rosbut on the back of a sliding rupee and a price hike is also on cards which will further help the cause of the company. This optimistic commentary may lead to the shares remaining in positive action today.

Kamal Sharma, Chairman of Lupin has said that the company should perform better in the September quarter than it did in the June quarter. Growth would be in double digits in the second quarter against virtually no growth in the first quarter. Further, the company is launching 15-20 products every year in the US market which should see business growth in that market in the range of 25-30%. The stock will trade positive riding on the sentiments that these announcements bring in.

Having formally acquired a 50% stake in Central UP Gas Limited (CUGL), Indraprastha Gas (IGL) is now looking to expand in several other parts of the country as well. IGL plans to invest Rs 400 crore in augmenting its infrastructure to meet the growing demand of CNG and PNG. The stock will remain in action today following these developments and announcements.

Venus Remedies aims to launch its major products, including the antibiotic drug Elores, in global markets including in the US and Europe with an eye on more than doubling revenues to Rs 1000 crore by 2016-17. The company, which focuses mainly on anti microbial resistance drugs and oncology, posted a turnover of Rs 460 crore in 2012-13 fiscal. The stock is likely to remain in good demand following these announcements.

The office of the Drug Controller General of India (DCGI) has asked Wockhardt to explain, within a month, deficiencies found at its Aurangabad facility. This development follows an inspection of the plant after the manufacturer faced an import alert from the US drug regulator earlier this year. The drug regulator has sent a letter to Wockhardt, an official said, adding that the deficiencies found by its inspection team did not warrant a serious immediate action. The stock is likely to remain in some negative light following this development.

Zensar Technologies has appointed an investment banker in New York to scout for acquisition opportunities for anywhere between USD 25 million (approximately Rs 166 crore) and USD 75 million (Rs 498 crore), according to its vice-chairman and chief executive officer Ganesh Natarajan. The acquisition news is likely to bolster the prospects of the stock.