Mid Market Commentary May 26
Indian stock markets continued with the buying spree where Nifty hit just below the 8000 mark while SENSEX hit 26000 levels by gaining nearly 150 points. On an intraday basis markets remain range bound so far, ahead of May F&O expiry.
On the global front Brent crude has crossed 50 USD/ barrel for the first time in 2016 today, after US stockpiles declined by 4.2 million barrels adding to expectations of a tightening global market.
Market breadth remained positive with 1211 advances and 1014 declines. Midcap and Smallcap indices too remained positive with marginal gains but underperformed the benchmark indices.
Sector wise capital goods sector turned positive after government approved national capital goods policy aimed at reducing dependency on imported equipment by incentivising domestic production and thereby generating additional employment. Infra sector saw 3 per cent rise pulled upwards by L&T that surged 10 per cent amid positive results. PSU Bank sector surged 0.7 per cent.
Top Nifty Gainers: Apart from L&T, IDEA grabs the top position in the Nifty50 and surged 4.5 per cent. Ambuja, BHEL and ONGC follow with 2.5, 2 and 1.6 per cent upside, respectively.
Top Nifty Losers: Infratel, Grasim, Sun Pharma and HDFC are the top losers posting more than one per cent losses. Tata Power follows with 0.9 per cent loss.
Nifty has hit just below 8000 at 7986. Nifty has surpassed our first resistance at 7940 and is approaching 8000 mark. If Nifty hits above 8000 on closing basis we hold 8100 as the next upside target. On the downside, 7960-7900 to act as immediate supports.
Stocks to watch:
IL&FS Transportation: IL&FS Transportation Networks surged 5 per cent after it announced a stake sale in Gujarat Road & Infra to MAIF Investments.
Strides Shasun: Strides Shasun bagged USFDA's tentative approval for HIV treatment drug. The company has received approval for Efavirenz tablets USP, 600 mg. The stock will be watched out for rest of the day.
NIIT: NIIT expands its presence in China through strategic partnerships. The company will develop a pool of next generation IT professionals in Big Data and Analytics. The share price of the company will be in focus for rest of the trading session.
Ajanta Pharma: Ajanta Pharma received USFDA approval of Voriconazole Tablets. Voriconazole is a triazole antifungal for treatment of serious invasive fungal infections and the generic version of Vfend.
Aptech: Aptech is to empower the students in Fiji with latest technologies and an International curriculum. The company also has plans for expansion to Lautoka and along the Suva to Nausori corridor.