Index trend and stocks in action on March 13
Nifty started off the week on a positive note tracking strong US jobs data. Nifty opened slightly higher than the previous day’s high, consolidated till the afternoon session and then gave a robust upside to close higher. Nifty gained 1.9 per cent adding 195 points to close at 10421. The bounce-back could be the continuation of short covering. Nifty has surged near to its major resistance at 10440-10445 levels, which is its prior resistance and 61.8 per cent retracement of the sharp downward rally. Hence, if Nifty retreats from here, we hold 10300-10285, followed by 10140 as the supports. However, Nifty has hit and closed above its 100-day EMA resistance at 10403 level and hence, if it continues to rally, we hold 10445-10495 as the immediate resistances followed by 10630.
Stocks in action:
TCS: Tata Sons sold 1.48 per cent stake in TCS for the purpose of raising Rs. 8,127 crore to pay off its debt and invest the remaining amount in group firms. The firm may mostly fund its steel major Tata Steel, which intends to buy Bhushan Steel and Bhushan Steel and Power.
Videocon Industries: The Videocon Group which is financially distressed may exit pacts with Phillips TV business and Electrolux appliance business for recovery. The company is unable to continue with production sans working capital which has reduced its sales tremendously.
Vedanta: Renowned rating agency Crisil has revised Vedanta’s ratings. Crisil revised the rating to AA/Positive/Crisil A1+ from earlier AA/Stable/Crisil A1+.
Adani Enterprises: After media released stressed projects of Adani, Essar, Jaypee, Lanco Power plants, Adani Enterprises has clarified that the particular projects belonged to Adani Power and not the company itself.
SBI: In a step to curb the NPAs, SBI has pulled five Kolkata-based companies including Burnpur Cement and Patni Group companies to National Company Law Tribunal. The insolvency amount reaches above Rs. 3,250 crore in the form of unpaid loans.
Yes Bank: The bank becomes the biggest shareholder of the Fortis Healthcare holding 17.31 per cent in the company. Now the bank will hold vital role in company decisions including the takeover battles.