Index Trends & Stocks In Action For 6th September 2013

D-street welcomed the new RBI Governor, Raghuram Rajan with cheer as the Sensex surged more than 400 points, mainly supported by banking stocks. The Nifty ended higher by 144 points at 5593. In our last write up we mentioned we expect this rally to continue. What we witnessed was in line with our expectation.

On analysing daily charts, we see the Nifty has managed to close above the recently-made swing-high of 5581. This indicates that bulls are in control of the market. For intraday, the Nifty will face resistance at levels of around 5650 and 5690. On the downside, the Nifty has strong support at levels of around 5530-5500. Should the Nifty hold the level of 5500 on a closing basis, we may a bear attack on the markets.

Fortis Healthcare said yesterday it has raised Rs 36.7 crore through a preferential allotment of 3.7 million shares to Standard Chartered PE. This has been the last phase of its fund-raising programme, wherein, on a cumulative basis, it has raised Rs 1040 crore this year through equity and equity-linked instruments, thus creating more room for debt reduction and expansion. Stock prices are expected to reflect a positive sentiment.

Chrys Capital’s investment vehicle Dali sold 4.9 million shares of Hexaware Technologies at an average price of Rs 126.5 per share, aggregating the transaction value to Rs 61.42 crore. Stock prices may see some pressure.

Astral Poly Technik set up a plant in Tamil Nadu to tap the South Indian plumbing and drainage market. Only 7 to 8 major brands have presence in South India, while rest of the 50% of the market is held by small timer manufacturers.

Ranbaxy Laboratories, which has completed two decades of operations in Russia, is mulling to expand its product portfolio to induct value-added and innovator products from parent company, Daiichi Sankyo.