Index Trends & Stocks In Action For 5th November 2013

The Sensex touched an all time-high in the last trading session and the Nifty fell shy by just a few points. There is a lot of sector rotation happening and as a result, stocks from diverse sectors continue to contribute to the Nifty and the Bank Nifty causing them to edge higher. Going ahead, the market is still a ‘buy on dips’ market. For today, the Nifty has a strong support around 6280 and if it breaks this level, we may see levels of 6249-6250 on the index. On upside, 6357 will act as a strong resistance and if we sustain above that level we may see a fresh breakout and the Index may go higher to levels of 6400.

In an environment where higher dollar rates have boosted the prospects of IT companies making good money Cognizant Technology Solutions is reportedly expected to beat its sales estimates for the September quarter and raise its full-year growth forecast when it announces results today. The stocks is expected to remain much in the limelight on the first full official trading day of the year.

Singapore-based agribusiness group, Wilmar International is reported to be in talks to buy a stake in sugar refiner Shree Renuka Sugars. The company is looking at acquiring a majority stake in Shree Renuka, which is looking at reducing its debt burden of more than Rs 8000 crore. The stock may see some interest in today’s trading following this development.

Piramal Enterprises has acquired OTC brand Cladryl (an anti-pruritic solution known for dermatosis application for minor skin irritations and itching), in India from Valeant Pharmaceuticals International, Inc. The amount paid for the acquisition is unknown, but it will reportedly enable Piramal Enterprises to widen its consumer products portfolio in the skin care segment. The move will help keep the stock in focus as it means a good revenue booster for the company.

At a time when companies are cautiously treading the expansion path, T V Narendran, the newly appointed MD of Tata Steel is reported to have made his intentions on that front very clear. With all the internal and external challenges that the company faces including an economic slowdown, he would be focusing on increasing the production capacity of the company. Now this is something very ambitious and daring to say. Good or bad, only time will tell. For now, stock is likely to spring in limelight as the market digests his ambitions.

Though there is no official word from the company on this yet, Jubilant Foodworks is reportedly contending with Lite Bite Foods to become the master franchisees for the US fast food chain Burger King.  While the Amit Burman (Dabur Group) controlled Lite Bite Foods has gone on record about its discussion with Burger King, the Jubilant management has declined to comment on the development. The stock of Jubilant Foodworks may see some good traction following this.